Mortgage Lender Home | News and Rates

U.S. mortgage rates unchanged Monday - BestInfo
Mon Mar 20, 2006 4:40 PM ET

NEW YORK, March 20 (Reuters) - The average rate on a 30-year U.S. mortgage with no upfront points was unchanged on Monday at 6-1/2 percent, according to BestInfo Inc.

If the mortgage market on Tuesday continues in its current direction, rates may decline.

The 30-year mortgage rate with one upfront point was unchanged at 6-1/4 percent.

The 30-year mortgage rate with two upfront points was unchanged at 6 percent.

The Mortgage Point Monitor is provided exclusively to Reuters by BestInfo. The company, formerly BestRates Inc., is a Dover, Vermont-based provider of mortgage market analysis.

Real estate
Inflation fears ease, mortgage rates dip

March 17, 2006

MARTIN CRUTSINGER and JEANNINE AVERSA

ASSOCIATED PRESS

WASHINGTON — Rates on 30-year mortgages, which had jumped to the highest level in 2 1/2 years, edged down slightly this week.

Mortgage giant Freddie Mac reported Thursday that rates on 30-year, fixed-rate mortgages averaged 6.34% this week, the second-highest level since mid-November.

This week’s rate was down slightly from a nationwide average of 6.37% last week, which had been the highest level since 30-year mortgages averaged 6.44% the week of Sept. 5, 2003.

“Market indicators this week seemed to point to less of a threat of inflation, and that allowed rates to drift lower,” said Frank Nothaft, chief economist at Freddie Mac.

He noted that while the government reported Thursday that construction of new homes and apartments dropped by 7.9% in February, that was a smaller decline than had been expected and followed an unusually strong January.

“This is a good sign that housing activity, although slowing from record levels set in the past few years, will continue to remain healthy this year,” Nothaft said.

Rates on 15-year, fixed-rate mortgages, a popular choice for refinancing a home mortgage, averaged 5.98% this week, down from 6% last week.

One-year adjustable-rate mortgages fell to 5.37%, down from 5.45% last week.

Rates on 5-year hybrid adjustable-rate mortgages dropped to 5.93%, down from 6.03% last week.

The mortgages rates do not include add-on fees known as points. The 1-year ARM carried an average fee of 0.8 point, while the other three mortgage categories carried nationwide average fees of 0.7 point.

A year ago, 30-year mortgages averaged 5.95%, 15-year mortgages stood at 5.47%, 1-year adjustable-rate mortgages were at 4.20% and 5-year hybrid adjustable-rate mortgages averaged 5.31%.

In other real estate news: Late mortgage payments climbed to a 2 1/2 -year high in the final quarter of 2005 as Gulf Coast homeowners struggled with fallout from the hurricanes, and lofty energy prices along with rising interest rates squeezed the budgets of others across the country.

The Mortgage Bankers Association, in its quarterly mortgage survey, reported Thursday that the percentage of mortgage payments that were 30 or more days past due for all loans tracked rose to 4.70% in the October-to-December quarter of last year.

That was up from the prior quarter’s 4.44% delinquency rate and was the highest since the second quarter of 2003.

The association’s survey covers 41.2 million loans.

One factor in the growth of late mortgage payments is the problems people faced in the communities devastated by last year’s hurricanes, which have pushed up delinquency rates in Louisiana and Mississippi, the association said.

But other factors also played a role.

“We have been expecting an uptick in delinquencies due to a number of factors: the seasoning of the loan portfolio, the increased share of the portfolio that are adjustable-rate mortgages and subprime mortgages, as well as the elevated level of energy prices and rising interest rates,” said Doug Duncan, the association’s chief economist.

Will state mortgage law invade privacy, discriminate?

By Jim Hagerty, Staff Writer

Law will be tested in Chicago market, and possibly expand to other areas within four years

A new lending law signed by Illinois Gov. Rod Blagojevich is on the horizon. House Bill 4050 was passed to aid those wishing to obtain home financing and avoid abusive lending tactics.

The law is scheduled to be enforced by July 2006, and has mortgage professionals reeling to keep the financial information of their clients private. Brokers are concerned, citing privacy as a principle on which the financial services industry was built.

Blagojevich and House Speaker Michael J. Madigan (D-Chicago) pushed the passage of the law. They say ample evidence exists that predatory lending practices by mortgage brokers are the cause of high rates of foreclosures in Illinois.

By implementing the new law, regulators aim to crack down on dishonest brokers by requiring mandatory credit counseling for applicants with properties in select Cook County ZIP codes. To enforce the legislation, the Illinois Department of Professional Regulation will be directed to establish and administer a database that will require mortgage brokers and title insurance companies to submit information about loan applicants, including consumer debt obligations and salary information. Once in the database, the information will be compared with credit counseling standards that have yet to be determined by the state. Loan applicants will then be notified if the Department feels the loans may be too risky, while all of their information will remain in the database.

Originally set to begin Jan. 1, the law has been delayed while the state does beta testing and finishes constructing the database. When enforcement begins, properties in ZIP codes 60620, 60621, 60623, 60628, 60629, 60632, 60636, 60638, 60643 and 60652 will serve as the pilot areas, which will determine if the law needs to expand its coverage to other areas of Illinois. An expansion of the law could happen in four years.

Although his company does not solicit a great deal of business from the Chicago markets, John Johnson, manager of Allied Mortgage in Rockford, suggested the state should stay out of such matters.

“This may create the inability of consumers to determine their own futures if the government gets involved in personal financial decisions,� Johnson said.

The privacy issue is only one in a possible series of red flags. In a letter to consumers, Blagojevich stated that foreclosure rates are climbing in the test areas. Most mortgage brokers disagree.

A study done by the Illinois Association of Mortgage Brokers (IAMB) shows foreclosure rates in those areas have dropped 65 percent since 2002, not to mention a large number of citizens residing in those ZIP codes are mostly African-American.

Marv Stockert, executive director of the IAMB, said the ZIP codes in question are composed of 58 percent African-Americans while the state percentage of African-Americans is 12.7.

“We are very concerned about the disparity of the racial makeup of the pilot ZIP codes, and how and why they were selected,� Stockert said.

Citing possible institutional racism, many mortgage originators operating in the test areas, such as Madeline Sanders, an African-American business owner, feel the government may be placing undue blame on African-American homeowners.

Sanders said: “The law is ridiculous. There is no other way to look at this other than the test areas to start this off are where mostly black people live and work. Blacks don’t get foreclosed on because we need credit counseling or because of predatory lending. We have the same issues as everyone else, but sometimes our resources are not the same as the majority of the population, and this is not helping.�

The new law also places title insurance companies and wholesale mortgage lenders at risk of having to avoid doing business in the HB-4050 areas. A borrower completing the mandatory credit counseling will be required to provide a title company with evidence the counseling has been completed. If that proof fails to be recorded with the mortgage and a real estate loan is made, the lender could not legally foreclose if the borrower defaults. Such an instance would shift the responsibility of repaying the loan from the homeowner to the title company.

So far, all Illinois title insurers are not willing to take that risk, which some say will force lenders to cease doing business with brokers who originate loans in the HB-4050 ZIP codes.

Illinois now joins 27 other states with strong reforms on predatory mortgage lending. States with the toughest laws, such as Massachusetts and New Jersey, have shown the largest decline in foreclosures and loans with excessive price tags. Illinois, however, is the only state that will require credit counseling to select loan applicants.

Whether HB-4050 will include Rockford has not been decided. Originally, 64 ZIP codes, including areas in and surrounding Rockford, were flagged, but the coverage was later scaled down to 10.

Why the UK housing market is still primed for a crash

What’s one of the first things you do when you move into a house you’ve just bought?

We’re not talking about paying the lawyer’s fees, or stamp duty, or any of the annoying administration like moving furniture or getting the phone connected. What’s the first thing you do to the house?

That’s right - you decorate. You buy furniture, you get carpets, you change the bathroom suite. Even in the nicest new home, it’s very rare not to find something you want to change.

So if the housing market is picking up again, why are home improvement retailers having such a hard time?

According to official retail sales data, the high street had a bleak January after the brief flurry of Christmas activity. Sales fell 1.3% on December, the most since December 2004. The average weekly sales value was unchanged on a year ago, the first time this has happened in the month of January since records began.

The decline was led by household goods, with sales falling 3% on the previous month. This was backed up by a trading update from Kingfisher. The home improvement retailer said sales excluding new stores at DIY chain B&Q had fallen 9% in the 13 weeks to January 28th. And apparently B&Q outperformed the market as a whole, stealing market share from rivals like MFI - so this isn’t a company-specific problem.

So why the downturn in the DIY market?

Well, there seem to be a couple of reasonable explanations. The first reason is that first-time buyers remain an endangered species in the housing market. The ones who do manage to buy somewhere have to borrow so much that they are hard-pushed to pay for any redecorating.

New figures from the Council of Mortgage Lenders show that the typical first-time buyer now has to borrow £103,000, on a salary of £33,000, to buy a house. They are also borrowing a typical 90% of the home’s value.

Worryingly, more and more are relying on future price increases to pay for their homes. During the fourth quarter of 2005, the percentage of first-time buyers using capital repayment mortgages fell to its lowest since 2000. One in four now use interest-only mortgages, with most of those not specifying how they will repay the capital once the mortgage period has ended.

That’s not the only risk they are taking to get on the property ladder. Official statistics show that the average salary in the UK sits around the £20,000 mark. This means that first-time buyers are either all extremely high achievers, or more likely, are relying on twin incomes to pay their mortgages.

It may seem counter-intuitive, but having two earners in a household can actually increase the risk of going bankrupt. It’s fine if one income is essentially for luxuries, or “wish-list” spending like private school fees, healthcare or annual holidays.

The problems arise when couples start to rely on both incomes for the basics, like heating bills, council tax and of course, paying the mortgage. That means it only takes one person being made redundant to land the household on the slippery road to repossession.

So with a backdrop like that, it’s not surprising that today’s first-time buyer might be reluctant to splash out on a new kitchen. Hence the troubles at MFI.

The other key point is that an increasing number of new purchases are driven by wannabe landlords - yes, even now, despite historically low yields. Buy-to-let investors accounted for one in ten new mortgages for house purchase last year, according to the CML. And by the end of 2005, the buy-to-let sector accounted for 8% of outstanding mortgage debt, the highest ever.

We’ve said it before, but investing in buy-to-let these days is simply wrong-headed. Even an industry body like the CML reckon prices will only grow by 2% this year - which means prices will be flat or fall after inflation.

That leaves a landlord hoping that the rental payments alone will be enough money to pay the mortgage and clear a profit. But even if everything runs smoothly, the potential returns are in the low single-digits at best, which seems like a lot of risk and effort for a minuscule reward. No wonder they can’t afford to decorate the places properly.

Of course, it’s not that surprising that buy-to-let is still popular. People tend to stick with investments that have done well historically, and it takes a lot to knock that tendency out of them. The buy-to-let investors who purchased in the second half of 2005 probably thought they were being smart, picking up some ‘bargains’ after a year-long slowdown in house prices. But then investors who bought into internet stocks just after the crash kicked off in March 2000 probably thought they were being smart too.

And the financial industry isn’t doing anything to discourage their folly. The hype around Sipps won’t have helped, even though Gordon Brown made a U-turn on putting residential property in them. But also, quite staggeringly, lenders have relaxed buy-to-let borrowing criteria. The typical lender will now allow borrowing of up to 85% of the property’s value, up from 80% in the first half of 2005. Similarly, rental cover of just 125% is now accepted, compared to 130% before.

Rampant speculation, irresponsible lending, stressed and squeezed first-time buyers - there’s nothing new about this year’s UK property market. Except that all the necessary conditions for an eventual crash have become even more firmly entrenched.

And just a date for your diaries - Gordon Brown will deliver the 2006 Budget on March 22nd. We’re sure you’re as excited as we are. But fear not, we’ll endure the inevitable flood of self-congratulatory pomp to bring you the edited highlights and a rundown of all the new stealth taxes we’ll be paying this year.

John Stepak

Quicken Loans, the Nation’s Largest Online Home Mortgage Lender, Signs Premier Sponsorship Agreement With HomePages.com
Quicken Loans Expands Relationship With HouseValues to Reach More Consumers and Support Direct-Lending Business

LIVONIA, MI — (MARKET WIRE) — 03/21/2006 — Quicken Loans, the nation’s largest online lender, announced today that it will partner with HouseValues Inc. (NASDAQ: SOLD) to become the premier advertising sponsor and content provider on the HomePages.com Mortgage Center. Quicken Loans is the first major lender to advertise in HouseValues’ consumer-facing Web portal in an effort to support its online lending business. Quicken Loans is already a client of HouseValues’ mortgage division, The Loan Page.

“HomePages.com is about helping home buyers and sellers nationwide find the tools and services they need for every real estate transaction,” said Ian Morris, chief executive officer of HouseValues Inc. “Quicken Loans has seen the value that we provide in terms of reaching qualified consumers, and we are excited about the opportunity to deepen our relationship with them as well as other industry-leading companies.”

“Powering the Mortgage Center on HomePages.com allows us to provide valuable home loan information and tools to consumers as they explore their housing options,” said Aaron Chestnut, director of online advertising at Quicken Loans. “Quicken Loans has simplified the mortgage process and makes it easy for consumers to understand the many mortgage options available to them. We look forward to expanding our relationship with HouseValues to discover new ways to benefit our business and our clients.”

The Mortgage Center launched on HomePages.com this month. The Quicken Loans agreement marks the expansion of HouseValues’ relationship with its lender partners to provide additional branding and business opportunities. HomePages.com currently works with other corporate sponsors and plans to create more opportunities for its lenders.

About Quicken Loans Inc.

Quicken Loans (www.quickenloans.com) is the nation’s largest online home mortgage lender and closed $16 billion in home loans in the 2005 calendar year. The Quickenloans.com website has been named a “Best of the Web” site by Forbes, Money and PC magazines. Founded in 1985, Quicken Loans employs more than 3,500 people and has been ranked in the top 15 of FORTUNE Magazine’s “100 Best Companies to Work for in America” list for three consecutive years. Computerworld magazine recently ranked the company #1 on its “100 Best Places to Work in Technology” list.

About HomePages

HomePagesâ„¢ (www.homepages.com) gives consumers a complete picture of where they want to live in a way they have never seen before. This lifestyle and neighborhood-centric site combines detailed neighborhood information (community demographics, crime stats, school details, parks and recreation, and local amenities and services) with searchable aerial imagery and integrated home listings to help consumers make the best decision about buying or selling a home. HomePages was developed by HouseValues Inc. (NASDAQ: SOLD), to provide consumers and real estate professionals with the information and tools they need for success throughout the home buying and selling process.

About HouseValues Inc.

Founded in 1999, HouseValues Inc. (NASDAQ: SOLD) provides consumers and real estate professionals with the information and tools they need for success throughout the home buying and selling process. The company’s flagship consumer products include HomePages.comâ„¢, a lifestyle and neighborhood-centric home buying and selling service; TheLoanPage.com, a service that provides current and prospective home owners with competitive mortgage and refinance quotes from leading lenders; HouseValues.com®, a service that provides home sellers with market valuations of their current home; and JustListed.comâ„¢, a service that alerts home buyers as soon as new homes hit the market that meet their criteria. Learn more at www.housevaluesinc.com.

Reasons To Refinance

When you have a clear objective in mind for refinancing your mortgage, you’re more likely to choose a loan that will help you meet your long- and short-term financial goals. Here are a few good reasons that homeowners refinance:
Refinance Tools
Debt Consolidation Calculator
Article - Using Home Equity to Consolidate Debt
Fixed or Adjustable Rate Calculator
Talk to a Refinance Expert!
Refinance to Convert an Adjustable Rate Mortgage (ARM) to a Fixed-Rate Mortgage

It’s important to consider what interest rates are doing. In the last year alone, the Federal Reserve has raised interest rates several times and is expected to keep raising rates in the near future. This means that, if you have an ARM, it may adjust to a rate that’s higher than a fixed-rate loan. It might be a good time to consider refinancing to a fixed-rate mortgage.

You must also think about the length of time you plan on being in your home. If you have an adjustable rate mortgage and will be in your home longer than the initial 3- or 5-year fixed period, it might be a smart move to convert to a fixed-rate loan.
Refinance to Convert a Fixed-Rate Mortgage to an Adjustable Rate Mortgage (ARM)

However, if you only plan on staying in your home for a few years, paying a higher interest rate for a 30-year fixed-rate mortgage may be costing you money. Consider refinancing to an Adjustable Rate Mortgage (ARM) instead, and pay a much lower amount each month.
Refinance to Lower Your Monthly Mortgage Payment

A percentage drop of just one half to three quarters of a percentage point can lower your mortgage payment. If you don’t refinance, you may be paying too much every month for your loan, and that’s never a good financial move.

There are three ways refinancing can lower your payment. The first is simply to refinance at a lower interest rate. You can also change the term on your mortgage to lower your payment. Switching from a 15- to a 30-year term can significantly lower your mortgage payment. But, if long-term savings is more appealing to you, refinancing from a 30-year to a 15-year mortgage can save you thousands of dollars over the life of your loan. The third way to lower your payment is by switching from a traditional mortgage with principal and interest payments to a mortgage program that allows interest only payments.
Refinance to Access Cash

Think of the equity in your home as a savings account that you could access through cash-out refinance. You may want to finance an important home improvement that will increase the value of your home, pay for college or pay off high interest credit card debt (read below). Whatever your reason, this may be the right option for you.
Refinance to Pay Off Credit Cards And Other Debt

The difference between credit card debt and a mortgage can, financially speaking, mean thousands of dollars. Why? Credit card debt is compounded where the interest on a mortgage is simple, and often tax deductible. Using the equity in your home rather than credit cards to finance expensive purchases can save you money paid in interest in the long run. Be sure to consult your tax advisor.

Refinance Questions & Answers
Q. Should I refinance?

Sometimes it makes sense to refinance . Sometimes it does not. It depends greatly on your individual situation and what your financial goals are. For instance, you may want to lower your interest rate  and/or monthly payment, but you need to ask yourself some questions:
How long do you expect to be in your home?
How much equity  do you have in your home?
Are you willing to pay points  to get a lower rate?
Will having lower payments more than make up for the closing costs , fees and points if any?
Q. Should I refinance from an adjustable rate to a fixed rate?

Generally, it’s a good idea to get the lowest fixed rate possible, but you also have to consider your situation. If you’re in the first year of an adjustable rate mortgage  (ARM) and you plan on moving in three years, it probably doesn’t make sense for you to refinance. However, if the rate on your ARM is about to adjust and you think the rate will go up, then it may make sense to get a long-term fixed-rate mortgage , especially if you don’t plan on moving in the next seven years or so.
Q. Are interest rates higher for a cash-out refinance?

The interest rate you pay on a cash-out refinance  loan will generally be the same as what you pay on a mortgage where you don’t take cash out. There may be an incremental fee associated with a cash-out refinance loan depending on the specific loan you choose and the loan-to-value  ratio. Using the equity in your home to pay off other bills can be a smart thing. Consider taking some money out to pay off high-interest credit cards bills, auto loans and any other debts you have that have non-tax-deductible interest. Please consult your tax advisor to find out whether you may be able to deduct the interest on your new loan.
Q. When should I “lock in� an interest rate?

Nobody can predict what interest rates will do. But historically, rates go up much faster than they come down. So if you’re thinking about buying a home or refinancing your mortgage, lock in your rate now—you can always refinance later if rates drop again. Any near-future drop in interest rates may not be drastic enough to impact your monthly mortgage payment. Of course, every situation is different, so it’s important to consider all of your options.
Q. Should I pay points to get a lower rate?

Paying points may or may not be your best option, depending on what you’re doing. Points paid on a loan you’ve refinanced can be deducted from your taxes only in small increments—1/30th a year for a 30-year mortgage, for example. This means it could be several years before your lower rate makes up for the points you pay. However, if you’re buying a home, points paid are a tax-deductible expense for that year. Please consult your tax advisor.
Q. Are there really loans with no closing costs?

There are few loans that truly have no closing costs. Sometimes lenders may not charge application fees and agree to pay the appraisal  and title  fees, but they may increase the interest rate in return. Lenders can also roll the costs into the amount of your loan. So, because you’re not paying costs up front, it’s called a “no closing cost” loan. While slightly increasing your mortgage might be acceptable to you, keep in mind that it’s not really a cost-free loan.
Q. How long does it take to refinance?

With Quicken Loans, refinancing normally takes between two and four weeks, depending on a few things:
Do you have a recent home appraisal?
Are you in an area that appraisers can get to easily?
Are there plenty of other comparable homes in your neighborhood?

Usually, getting the home appraisal is what slows the process down the most. During refinancing booms, appraisers can be difficult to schedule. Also, having your paperwork ready helps to speed the process along much faster.
Q. How much money will I need to bring to the closing?

A general guideline is that you’ll need two percent of the home’s purchase price for prepaid interest  to cover the time between the date you close your loan and the date you make your first mortgage payment. Some states may also require pre-payment of property taxes . When refinancing however, your old mortgage will most likely have money in an escrow  account that can cover these costs. Some borrowers get short-term loans while their escrow transfers back to them, but most pay the money at the closing knowing they’ll get it back when their escrow is returned.
Q. How can I reduce my closing costs?

You may be able to eliminate some closing costs. For instance, your lender might be able to reuse your last home appraisal or your credit report if they’re recent enough. Another option may be to have your mortgage lender re-certify some documents (appraisal, title, etc.) for less than the cost of getting new ones.

FindArticles > Black Enterprise > May, 2003 > Article >

Refinance your mortgage now: there’s still time to take advantage of the lowest home mortgage rates in 30 years - Real Estate
Jeffrey Mckinney

ALWAYS THE BUSINESSMAN, CHARLES DAVID MOODY JR. OF Atlanta was motivated to find a way to use falling interest rates to boost disposable income. His decision: to refinance the remaining $450,000 on his 30-year, fixed-rate loan with a 7.25% interest rate through Atlanta’s Citizens Trust Bank. By refinancing to a 30-year, fixed-rate loan at 6.25%, the owner-operator of C.D. Moody Construction Co. Inc. (No. 92 on the BE INDUSTRIAL/ SERVICE 100 list with $30 million in sales) cut his monthly mortgage payment from $2,900 to about $2,200.

Moody plans to use the $8,400 he expects to save this year to expand his investments in stocks and help pay $25,000 in annual tuition costs for his 17-year-old son, Charles III, who plans to attend Morehouse College next year. Moody, 47, and his wife Karla, 46, a registered hospice nurse, are also saving to send their 16-year-old daughter, Karia, a high school sophomore, to college in another two years. “Refinancing has really helped us free up cash to pay toward tuition,” Moody says with a smile.

He cautions borrowers to make sure that they take any savings they realize from refinancing and turn it into an investment that will improve their financial outlook. “I wouldn’t take it and go buy a big-screen TV or some jewelry,” he says. “You want to use the savings on something that will bring you a good investment return or build value in an important asset.”

Moody is just one of a growing number of Americans who have jumped onto the refinancing bandwagon, a trend that is expected to continue throughout the year. Mark M. Zandi, Ph.D., chief economist and co-founder of Economy.com, says that more than $2.5 trillion in mortgages were refinanced over the last two years, and another $1.2 trillion in mortgages are expected to be refinanced in 2003, making up nearly 20% of all mortgage originations (refinances plus purchases) this year. The average rate on a 30-year, fixed-rate mortgage for the United States in 2003 is projected at 6.2%, according to the Mortgage Bankers Association of America. Millions of Americans have refinanced anywhere from one to three times since 2001, and Zandi suggests that there is still a fairly large pool of refinancing applicants in the marketplace. But experts say the refinancing stampede that hit record levels during the past two years will eventually slow.

Consumers who refinance stand to benefit in a number of ways. They can cut their interest rate, which reduces mortgage terms and interest expense and increases their overall cash flow. They can also take out built-up equity in their home to pay off outstanding debt, such as credit cards, or make home improvements to increase the overall value of their home.

When Lori Allen of Reeders, Pennsylvania, refinanced her home mortgage in January, it helped solve a number of cash flow problems. The 39-year-old financial assistant at Aventis Pharmaceuticals needed to pay off $4,500 in school, municipal, and property taxes that threatened to setback attempts to improve her damaged credit rating. Also, she wanted to delete other lingering bills that were squeezing her budget.

“It would have been hard for me to come up with $4,500 on my own,” says Allen, whose husband died of a brain aneurysm 10 years ago. “I’m a single parent in a one-income household, so had I not been able to refinance, it would’ve been hard for me to stay on top of my current bills. Now, I don’t have to play catch up.”

Allen refinanced the original $154,000 30-year, fixed-rate mortgage at 10.35% interest into a $175,000 20-year, fixed-rate mortgage at 8% interest. Although she signed the original loan agreement in 1999, she didn’t begin making payments until 2001 because the builder experienced significant delays constructing her home. Otis T. Harper II, senior mortgage officer for United National Mortgage Corp. in Easton, Pennsylvania, which issued the loan, says Allen’s refinance was more complicated than most. First, the refinanced loan amount jumped from $154,000 to $162,000 because Allen had to pay a substantial prepayment penalty for paying her initial loan back within 24 months. Harper then rolled the $4,500 in back taxes into the loan, added closing costs, and an additional $3,000 to pay off other personal bills.

Further complicating matters was Allen’s credit rating. “Her credit scores were kind of low,” says Harper, “so we offered her a mortgage credit program, which doesn’t take her credit card history into account. Instead, it looks at how you’ve paid your mortgage. If your mortgage history has no missed payments or payments that were 60 days late, we take that into account as to the kind of interest rate we can offer.”

Perhaps what helped make the loan most possible for Allen was that her house appreciated in value from $175,000 to $225,000. Allen estimates that shaving more than two percentage points off her loan and shortening the payback period from 30 years to 20 years will save her $168,154 over the life of the loan. To help keep her credit rating blemish-free, she has elected to have the $900 biweekly mortgage payments automatically deducted from her checking account Now, with the outstanding bills eliminated, her goal is to improve her credit rating over the next two years so that she can refinance again to a regular bank loan, which should carry an even lower interest rate than she has now.

“The best part of this experience is that [United National] worked to see which program worked best for me,” says Allen. With her bills paid up-to-date, she says she can now afford to chip in with her mother to send her daughter D’neah, 10, to Sylvan Learning Center for additional tutoring to improve her grades.

If you are considering refinancing your current home mortgage, there are many factors to review before taking action.

EXPLORE OPTIONS WHEN FINDING THE BEST RATE

When you contact your lender, instead of only asking about the current refinancing rate, ask if it offers a “mortgage modification” option. This option can be offered if the lender still holds your mortgage in its portfolio and hasn’t sold it to another lender. It provides the benefit of a lower interest rate and lower monthly payment without having to extend the mortgage’s term, says Greg McBride, a financial analyst at Bankrate.com, which tracks rates nationally.

For example, mortgage modification could allow a borrower who has paid three years into a 30-year, fixed-rate $150,000 mortgage to refinance the remaining 27 years, not the entire 30 years. By refinancing over 27 years instead of 30 years you reduce the interest rate and lower the payment. This really benefits borrowers who paid into the loan for a short time and want the amenities that refinancing brings but can’t afford the higher monthly payments of refinancing from a 30-year, fixed-rate mortgage to a 15-year, fixed-rate mortgage.

Another perk with this option is that borrowers can often avoid out-of-pocket expenses since lenders already have their origination documents. But borrowers should be aware that “[mortgage modification] is good if you don’t want to take extra cash out of the loan or tap into the equity,” McBride says. “It would not work for those wanting to take out equity or extra cash to pay off bills or make home improvements…then you’re looking at refinancing into a new loan.”

For conventional refinances, be sure to do comparison shopping among lenders to find the best terms. Visit several local lenders to determine which offer the most competitive rates. You can also check rates locally and nationally over the Internet by clicking on Bankrate.com, Mortgage Select.com, Mortgage.com, and Mortgagel01.com.

EXAMINE HOME REFINANCING COSTS

The old adage that says you should only refinance to a new rate that is at least two full percentage points below your current rate may no longer apply. Refinancing costs have come down considerably, courtesy of greater competition among lenders, more refinancing options for consumers, and new mortgage-financing technology. Consumers can often reap solid benefits from refinancing if the new rate is three-quarters of a percentage point below the current rate. Depending on your finances, experts say, consumers might want to finance out-of-pocket expenses into the new rate, thereby avoiding having to pay cash upfront to cover closing costs. In most cases, out-of-pocket costs, which include appraisals, home inspections, and legal fees, may equal about 2.5% of the mortgage amount, depending on where you live.

If you shop around, you can find many lenders that provide zero-cost financing to consumers, although they then charge a slightly higher interest rate on the loan. For example, a borrower refinancing a $150,000, 30-year, fixed-rate mortgage at 6% would have a monthly payment of about $899.33, with out-of-pocket expenses of roughly $3,000. But by increasing the rate by 0.25%, the lender could agree to pay 75% of the closing costs. That would leave the borrower with a monthly payment of $923.58, says McBride.

Perhaps the important thing to consider, if you’re planning on living in the home for a long period, might be to pay cash for out-of-pocket expenses to get a lower rate and monthly payment. That way you can enjoy the savings over a longer period of time. But if you only plan on living there for two-to-five years, it might make more sense to take the higher rate and payment by financing the closing costs into the loan. Financing those expenses into the mortgage might be particularly worthwhile if the refinanced loan is more than a full percentage point less than the current rate.

USE YOUR GOOD CREDIT FOR A BETTER RATE

Borrowers with good credit ratings have the most leverage to bargain for the best rates. Those with credit blemishes, including such obstacles as bankruptcy, can still refinance, but likely at higher rates. Some borrowers with bad credit have options that may allow them to refinance. For example, some lenders allow consumers to obtain home loans or refinance mortgages on the basis of assets rather than credit rating. But because of the increased credit risk, these borrowers should be prepared to pay higher rates.

DON’T GAMBLE THAT RATES WILL FALL FURTHER

There is still time to refinance if you haven’t already. U.S. consumers who have refinanced since 2001 have already reaped $274 billion in interest rate savings alone, says Zandi of Economy.com. But don’t delay. Mortgage rates could move higher in the second half of this year, when many economists predict the economy will improve.

Remember that lenders still have a huge backlog of refinancing traffic so the closing process could take longer. “You should do it now because you don’t want to be on the tail end of that backlog and roll the dice that rates won’t move higher,” says McBride.

Refining Resources

If you’re looking to refinance your current mortgage, Otis T. Harper II, senior mortgage officer for United National Mortgage Corp., says it’s best to take a proactive approach. “With mortgage rates so low, you can call any lender and it should have a number of products or programs that you can benefit from.”

There are a number of Websites that can help you find the best rates on refinancing in your area. They typically ask you to fill out an online questionnaire to help determine the type of loan that suits you. Then, within 24 to 48 hours, they promise to provide a list of lenders who are interested in refinancing your mortgage.

* Loanfight.com gives three rate quotes from lenders within 24 hours of filling out a questionnaire.

* Mortgageexpo.com receives quotes from a database of 800 lenders within 24 hours.

* VAresourcecenter.com specializes in veterans’ administration home loans.

* Lendingtree.com offers four rate quotes from top lending institutions, plus offers extensive information on mortgages.

A Consumer’s Guide to Mortgage Refinancings

This booklet was prepared in consultation with the following
organizations:

American Bankers Association
Appraisal Institute
Comptroller of the Currency
Consumer Federation of America
Credit Union National Association, Inc.
Federal Deposit Insurance Corporation
Federal Home Loan Mortgage Corporation
Federal National Mortgage Association
Federal Reserve Board’s Consumer Advisory Council
Federal Trade Commission
Independent Bankers Association of America
Mortgage Bankers Association of America
Mortgage Insurance Companies of America
National Association of Federal Credit Unions
National Association of Home Builders
National Association of Realtors
National Credit Union Administration
Office of Special Adviser to the President for Consumer Affairs
Savings and Community Bankers of America
The Consumer Bankers Association
U.S. Department of Housing and Urban Development
Veterans Administration

The Federal Reserve Board and the Office of Thrift Supervision prepared
this booklet on refinancing your mortgage in response to a request from
the House Committee on Banking, Finance and Urban Affairs and in
consultation with many other agencies and trade and consumer groups. It
is designed to help consumers understand an important aspect of home
financing.

We believe a fully informed consumer is in the best position to make a
sound financial choice. If you are considering refinancing your home
loan, this booklet will provide useful basic information about
refinancing. It cannot provide all the answers you will need, but we
believe it is a good starting point.

A Consumer’s Guide to Mortgage Refinancings

If you are a homeowner who was lucky enough to buy when mortgage rates
were low, you may have no interest in refinancing your present loan. But
perhaps you bought your home when rates were higher. Or perhaps you have
an adjustable-rate loan and would like to obtain different terms.

Should you refinance? This brochure will answer some questions that may
help you decide. If you do refinance, the process will remind you of
what you went through in obtaining the original mortgage. That’s
because, in reality, refinancing a mortgage is simply taking out a new
mortgage. You will encounter many of the same procedures-and the same
types of costs-the second time around.

Would Refinancing Be Worth It?

Refinancing can be worthwhile, but it does not make good financial sense
for everyone. A general role of thumb is that refinancing becomes worth
your while if the current interest rate on your mortgage is at least 2
percentage points higher than the prevailing market rate. This figure is
generally accepted as the safe margin when balancing the costs of
refinancing a mortgage against the savings.

There are other considerations, too, such as how long you plan to stay
in the house. Most sources say that it takes at least three years to
realize fully the savings from a lower interest rate, given the costs of
the refinancing. (Depending on your loan amount and the particular
circumstances, however, you might choose to refinance a loan that is
only 1.5 percentage points higher than the current rate. You may even
find you could recoup the refinancing costs in a shorter time.)

Refinancing can be a good idea for homeowners who:

* want to get out of a high interest rate loan to take advantage of
lower rates. This is a good idea only if they intend to stay in the
house long enough to make the additional fees worthwhile.

* have an adjustable-rate mortgage (ARM) and want a fixed-rate loan
to have the certainty of knowing exactly what the mortgage payment
will be for the life of the loan.

* want to convert to an ARM with a lower interest rate or more
protective features (such as a better rate and payment caps) than
the ARM they currently have.

* want to build up equity more quickly by converting to a loan with a
shorter term.

* want to draw on the equity built up in their house to get cash for
a major purchase or for their children’s education.

If you decide that refinancing is not worth the costs, ask your lender
whether you may be able to obtain all or some of the new terms you want
by agreeing to a modification of your existing loan instead of a
refinancing.

Should You Refinance Your ARM?

In deciding whether to refinance an ARM you should consider these
questions:

* Is the next interest rate adjustment on your existing loan likely
to increase your monthly payments substantially? Will the new
interest rate be two or three percentage points higher than the
prevailing rates being offered for either fixed-rate loans or other
ARMs?

* If the current mortgage sets a cap on your monthly payments, are
those payments large enough to pay off your loan by the end of the
original term? Will refinancing to a new ARM or a fixed-rate loan
enable you to pay your loan in full by the end of the term?

What Are the Costs of Refinancing?

The fees described below are the charges that you are most likely to
encounter in a refinancing.

* Application Fee. This charge imposed by your lender covers the
initial costs of processing your loan request and checking your
credit report.

* Title Search and Title Insurance. This charge will cover the cost
of examining the public record to confirm ownership of the real
estate. It also covers the cost of a policy, usually issued by a
title insurance company, that insures the policy holder in a
specific amount for any loss caused by discrepancies in the title
to the property.

Be sure to ask the company carrying the present policy if it can
re-issue your policy at a re-issue rate. You could save up to 70
percent of what it would cost you for a new policy.

Because costs may vary significantly from area to area and from lender
to lender, the following are estimates only. Your actual closing costs
may be higher or lower than the ranges indicated below.

Application Fee                 $75      to     $300

Appraisal Fee                  $150      to     $400

Survey Costs                   $125      to     $300

Homeowner’s Hazard Insurance   $300      to     $600

Lender’s Attorney’s
Review Fees                $75      to     $200

Title Search and
Title Insurance           $450      to     $600

Home Inspection Fees           $175      to     $350

Loan Origination Fees               1% of loan

Mortgage Insurance             0.5%      to     1.0%

Points                           1%      to       3%

* Lender’s Attorney’s Review Fees. The lender will usually charge you
for fees paid to the lawyer or company that conducts the closing
for the lender. Settlements are conducted by lending institutions,
title insurance companies, escrow companies, real estate brokers,
and attorneys for the buyer and seller. In most situations, the
person conducting the settlement is providing a service to the
lender. You may also be required to pay for other legal services
relating to your loan which are provided to the lender. You may
want to retain your own attorney to represent you at all stages of
the transaction including settlement.

* Loan Origination Fees and Points. The origination fee is charged
for the lenders work in evaluating and preparing your mortgage
loan. Points are prepaid finance charges imposed by the lender at
closing to increase the lender’s yield beyond the stated interest
rate on the mortgage note. One point equals one percent of the loan
amount. For example, one point on a $75,000 loan would be $750. In
some cases, the points you pay can be financed by adding them to
the loan amount. The total number of points a lender charges will
depend on market conditions and the interest rate to be charged.

* Appraisal Fee. This fee pays for an appraisal which is a
supportable and defensible estimate or opinion of the value of the
property.

* Prepayment Penalty. A prepayment penalty on your present mortgage
could be the greatest deterrent to refinancing. The practice of
charging money for an early pay-off of the existing mortgage loan
varies by state, type of lender, and type of loan. Prepayment
penalties are forbidden on various loans including loans from
federally chartered credit unions, FHA and VA loans, and some other
home-purchase loans. The mortgage documents for your existing loan
will state if there is a penalty for prepayment. In some loans, you
may be charged interest for the full month in which you prepay your
loan.

* Miscellaneous. Depending on the type of loan you have and other
factors, another major expense you might face is the fee for a VA
loan guarantee, FHA mortgage insurance, or private mortgage
insurance. There are a few other closing costs in addition to
these.

In conclusion, a homeowner should plan on paying an average of 3 to 6
percent of the outstanding principal in refinancing costs, plus any
prepayment penalties and the costs of paying off any second mortgages
that may exist.

One way of saving on some of these costs is to check first with the
lender who holds your current mortgage. The lender may be willing to
waive some of them, especially if the work relating to the mortgage
closing is still current. This could include the fees for the title
search, surveys, inspections, and so on.

The information contained in this brochure is intended to help you ask
the right questions when considering a possible refinancing of your
loan. It is not a replacement for professional advice. Talk with
mortgage lenders, real estate agents, attorneys, and other advisors
about lending practices, mortgage instruments, and your own interests
before you commit to any specific loan.

Ask your lender or real estate agent for the following related
pamphlets:

* A Consumers Guide to Mortgage Settlement Costs

* A Consumer’s Guide to Mortgage Lock-Ins

* Consumer Handbook on Adjustable Rate Mortgages

SEPTEMBER 2004 MORTGAGE NEWS
Buy A New House or Sell Your Old House First - Chicken Or The Egg ?
Tuesday, 27 Sept 2004 21:41:43 EST
For the homeowner it can be a tough decision – buy a new house, or sell the old one first. Here are some solutions to the problem.

Mortgage Fraud In The News
Wednesday, 28 Sept 2004 10:48:09 EST
A quick overview of a growing problem and a look at two tactics of predatory lending. Aggressive sales techniques and home improvement scams.

Mortgage Fraud and Predatory Lending Practices
Friday, 30 Sept 2004 11:06:16 EST
Illegal activities aimed at your community bank or big nationwide lenders eventually and inevitably lead to higher loan costs and more restrictive lending practices.

OCTOBER 2004 MORTGAGE NEWS
Mortgage Fraud Part 2 - More Predatory Lending Practices
Tuesday, 5 Oct 2005 11:17:28 EST
Two more predatory lending techniques come under the microscope, pressure to refinance a low interest first mortgage, and that old favorite, bait and switch.

Not So Smooth A Move
Thursday Oct 6, 2004 01:35 AM EST
Freddy Mac and Fannie Mae are beginning to pay a price for “smoothing” revenues and expenses.

A New Take On The Company Store
Tuesday Oct 12, 2004 09:25 AM EST
Freddie Macs new in-house benefit may signal eventual help with your own “Workforce Housing” problems

New Home Buying Tips and Buyers Block
Thursday Oct 14, 2004 09:25 AM EST
Unable to pull the trigger and buy that house? You (or your customer) may be suffering from Buyers Block. Here is one case study and some tips.

More Trouble For Fannie Mae
Friday Oct 15, 2004 08:30 AM EST
The Justice Department has joined the Securities and Exchange Commission in investigating the Corporation’s accounting practices.

Mortgage Fraud Part 3 -Two More Predatory Lender Practices
Monday, 18 Oct 2004 11:46:12 EST
Two more predatory mortgage practices: pushing a borrower into an unaffordable loan, almost guaranteeing failure and steering a borrower to a more costly loan or unethical lender.

Understanding Real Estate Agency - Part One
Thursday Oct 21, 2004 04:20 PM EST
Does anyone understand dual agency, sellers buyers, or non-agency? A primer on the definitions, to be followed by some guidance about which to use, where to beware.

Greenspan, Freddie Mac Upbeat on Near Future of Real Estate
Friday Oct 22, 2004 3:15 PM EST
Both Alan Greenspan and Freddie Mac agree that the “housing bubble� is not going to burst with any real explosive force in the near future.

Another Workforce Housing Initiative
Monday Oct 25, 2004 11:20 AM EST
As the toll of commuting on workers, employers, and the environment moves onto the housing stage, local government and housing agencies are stepping forward. Portland Oregon has a good idea.

IRS Finalizes House Sale Regulations
Tuesday Oct 26, 2004 05:15 PM EST
The Internal Revenue Service has finalized the regulations for interpreting a portion of the Taxpayer Relief Act of 1997 dealing with the exclusion of primary home sales from capital gains taxes.

Dont Be “Pound Foolish� About Real Estate Commissions
Friday Oct 29, 2004 3:35 PM EST
Sometimes you need to look at more than the bottom line when trying to negotiate a deal. In real estate you might cut yourself out of the best service and results.

New Home Sales Still Sailing
Friday Oct 29, 2004 4:00 PM EST
September figures and in and they are up again.

NOVEMBER 2004 MORTGAGE NEWS
And Still More Predatory Lending Practices
Monday Nov 1, 2004 8:00 AM EST
We conclude the series with three more common tactics of predatory lenders.

Smart Commute
Monday Nov 1, 2004 10:25 AM EST
Two more metropolitan areas has been selected by Fannie Mae to participate in a program to encourage home ownership in areas served by mass transit.

Understanding Real Estate Agency - Part Two
Thursday Nov 4, 2004 04:20 PM EST
… continued from Part 1.

National Association of Realtors® Holds Annual Conference
Tuesday Nov 9, 2004 10:20 AM EST
A horde of 25,000 Realtors held their annual convention in Orlando Florida. They flexed their political muscle and projected a bright future for residential and commercial real estate.

Freddie Mac Kicks Off Home Buying Awareness Program
Tuesday Nov 9, 2004 2:45 AM EST
With minority home ownership lagging behind, Freddie Mac has launched a new program in Miami to set the record on home buying straight.

Freddie Mac Notes Increase in Cash Out Refinancing
Wednesday Nov 10, 2004 9:220 AM EST
Homeowners resume pattern of tapping into home equity. Whatever the reason of it, it is pumping megabucks into the economy.

Choosing A Real Estate Agent - Top Producer or Hungry Rookie?
Thursday Nov 11, 2004 11:15 AM EST
You should ask yourself a few questions before you start interviewing prospective real estate agents

Freddie Mac Bumps Up 2004 and 2005 Projections
Monday Nov 15, 2004 09:25 AM EST
Freddie Mac is even more bullish this month than it was last month, and has slightly increased its 2004 and 2005 projections.

A Good Offense
Tuesday Nov 16, 2004 11:30 AM EST
Fannie Mae has a critical report due today and (coincidentally) is issuing press releases about its good works.

Big Whoops At NBC
Wednesday Nov 17, 2004 08:05 AM EST
The Peacock Network may have just learned to check its “contributors’� credentials at the door after Realtor flap.

Fannie Mae Misses 10 Q Filing Deadline
Thursday Nov 18, 2004 11:30 AM EST
The Corporation missed a deadline and more than just stockholders may ultimately be affected.

Congress Increases VA Loan Guarantee
Friday Nov 19, 2004 01:40 PM EST
Congress is sending President Bush legislation to increase the guarantee offered to veterans under the Department of Veterans Affairs home loan program. The new loan amounts will make the program a realistic option for vets in high cost housing areas.

Ohio Is First State To Sue Fannie Mae
Tuesday Nov 23, 2004 11:30 AM EST
Fannie Mae, again. The lawsuits are just beginning. In football they call it piling on.

Congressional Leader Requests Info On Real Estate Information Technology
Tuesday Nov 23, 2004 03:10 PM EST
Congressman Oxley writes a letter to GAO, and inquiring minds want to know why.

Apparently Oxley Not Just Curious
Wednesday Nov 24, 2004 09:00 AM EST
Apparently something is afoot in Michael Oxley’s office. Might real estate be the next area for federal oversight?

ForSaleByOwner.com Beats Back Ban
Wednesday Nov 24, 2004 11:10 AM EST
Clearly the Internet is going to be the next battleground as real estate agents seek to limit the growth of properties For Sale by Owner.

New Home Sales Take An Unexpected Jump
Tuesday Nov 30, 2004 04:35 PM EST
October new home sales take an unexpected leap and September figures are revised upwards.

DECEMBER 2004 MORTGAGE NEWS
The Hardest Part Of Buying A House Might Be The Forms
Wednesday Dec 1, 2004 10:28 AM EST
If you are sitting down to make an offer, you may wonder whatever happened to the paperless society.

Free Credit Report Availabilty Begins Slow National Rollout
Wed, 7 Sep 2005 16:40:13 EST
Thanks to a new federal law, consumers can now get a free reading on their credit up to three times per year.

Fannie Mae Raises Conforming Loan Limit
Thursday Dec 1, 2004 4:15 PM EST
An annual event – Fannie Mae raises the loan limit on conforming mortgage loans.

Fannie Mae Gets Slapped Again
Thursday Dec 2, 2004 12:24 PM EST
Fannie Mae gets slapped again…and again. Now the words criminal and turkey are being bandied about.

One Day Old Credit Report Law Is Fueling Fraud
Friday Dec 3, 2004 10:33 AM EST
Not even a day after it begins, and crooks are already trying to profit from the new free credit report benefit.

Same-House Values Continue Climb
Tuesday Dec 7, 2004 4:03 PM EST
The Office of Federal Housing Enterprise Oversight has issued its third quarter report on same-house values. Unlike most economic reports, this one is almost fun to read.

Freddie Issues Monthly Economic Outlook, UCLA Not Sure It Agrees
Friday Dec 10, 2004 10:50 AM EST
Freddie Mac and UCLA economists don’t exactly agree on the degree, but both see a slowing in the housing market on the short term horizon.

Buyers Now Represented By Agents In A Majority of Real Estate Transactions
Friday Dec 10, 2004 2:57 PM EST
Over half of real estate buyers are now represented by their own agents.

Buying A Condo Is Not Like Buying A House
Monday Dec 13, 2004 9:15 AM EST
Condos can offer early entry to homeownership or a welcome lifestyle for those seeking to kick back and relax. but there are a lot of issues that are unique to this type of purchase.

Buying A Condo: Make Sure You Cover All Contingencies
Monday Dec 13, 2004 3:33 PM EST
Making an offer on a condominium involves a lot of contingencies that don’t apply to a single family home. Make sure each is included in your offer and that documents are adequately reviewed.

What Does A Good Real Estate Agent Do To Earn The Big Bucks ?
Friday Dec 17, 2004 11:35 AM EST
A seller has the right to certain expectations when he hires a real estate agent. The best agents may make you wonder why you ever questioned that commission.

Fannie Mae Advised To Restate Earnings
Friday Dec 17, 2004 3:37 PM EST
SEC has announced it would like Fannie Mae to take a second look at its earning statement. The effects of this on the mortgage industry may be far reaching.

Mortgage Rates - Freddie Mac Issues Weekly Mortgage Survey
Fri, 6 Jan 2006 14:33:47 EST
Mortgage rates show very little change from the previous week.

Fannie Mae Scandal Topples Two Execs
Wednesday Dec 22, 2004 5:00 PM EST
The CEO and CFO of Fannie Mae were forced to resign Tuesday by the Corporation’s Board of Directors.

Mortgage Rates Up Slightly
Mon, 22 Aug 2005 16:34:01 EST
Rates, fees, and points remained relatively stable…

Fannie Mae Continues To Dominate Industry News
Wednesday Dec 29, 2004 11:07 AM EST
Former top executives leave Fannie Mae with full pockets while the mortgage giant scrambles to meet capital requirements.

JANUARY 2005 MORTGAGE NEWS
Agent Expectations Part II
Monday Jan 3, 2005 10:34 AM EST
Here are a few more things you should expect from a real estate agent in return for that average 5.2% commission, along with a few things you have no right to expect.

Don’t Let The Figures Throw You, Look For Trends
Tuesday Jan 4, 2005 9:36 AM EST
If all the real estate and mortgage reports seem contradictory, just remember the old adage about proving anything with statistics. Overall they make sense if you look for patterns rather than paying strict attention to the numbers.

Fannie Starts the Long Process of “Digging Out.�
Tuesday Jan 4, 2005 9:44 AM EST
In its first move to put a debilitating scandal behind it, Fannie Mae offers a huge bunch of preferred stock to private investors.

Its National Radon Action Month
Wednesday Jan 5, 2005 9:00 AM EST
Many people know nothing about radon, and it is a potential killer. Observe National Radon Action Month by learning something about this naturally occurring gas, and by testing your home.

Mortgage Rates Rise For Second Straight Week
Tuesday Jan 4, 2005 9:08 AM EST
Freddie Mac issues weekly interest rate report. While rates are up, the changes are marginal.

Freddie Mac Issues Annual Adjustable Rate Mortgage Survey
Friday Jan 7, 2005 4:57 PM EST
Freddie Mac issues 21st annual survey of adjustable rate mortgages. In spite of lender discounts, savings and popularity are declining.

Alaska Eliminates Dual Agency
Friday Jan 7, 2005 5:11 PM EST
Effective January 1, real estate offices can no longer provide dual agency in Alaska.

Fannie Mae Appoints New Independent Auditor
Friday Jan 7, 2005 5:18 PM EST
Fannie Mae has appointed Deloitte & Touche, LLP as its new auditor.

FHA Raises Mortgage Limits
Friday Jan 7, 2005 5:20 PM EST
The U.S. Federal Housing Administration has raised its maximum insurable mortgage limits by 7.8 percent for 2004.

Mortgage Applications Down During Holiday Week
Friday Jan 7, 2005 5:21 PM EST
Mortgage applications decline over the holidays.

Weekly Freddie Mac Rate Report Adds New Category
Tuesday Jan 11, 2005 9:55 AM EST
Freddie Mac has released its weekly mortgage rate report for the week ended January 6 and is now reporting on rates and points for the 5/1 adjustable.

Housing To Have A Splendid Year
Wednesday Jan 12, 2005 5:41 PM EST
Freddie Mac’s end of year monthly report sees only a very gradual slowing in all aspects of the mortgage industry.

Two New Housing Initiatives Aimed At Minority Community
Wednesday Jan 12, 2005 5:45 PM EST
Both Freddie Mac and Fannie Mae have announced new very unique initiatives to increase minority homeownership.

The Real Estate Agents Bill of Rights
Monday Jan 17, 2005 2:49 PM EST
A contract is a reciprocal agreement and a seller has a few obligations to his agent. Therefore we present a short Agents Bill of Rights.

Mortgage Rates Dip Slightly
Monday Jan 17, 2005 2:57 PM EST
Mortgage rates dip slightly for week ending Jan 13.

Fannie Mae Test Drives 40 Year Mortgages
Wednesday Jan 19, 2005 8:50 AM EST
Fannie Mae’s pilot program for 40 year mortgages may prove that what goes around comes around – even if it is not such a good idea.

Fannie Mae Slashes Quarterly Dividend
Wednesday Jan 19, 2005 9:30 AM EST
Fannie Mae took what will be a very unpopular route on its journey to solvency on Tuesday, slashing the dividend on its common stock by 50%.

Stripping Makes It To The Big Time
Friday Jan 21, 2005 4:30 PM EST
Home equity liquidation, a fancy name for refinancing every cent of value out of your home, is beginning to attract the attention of regulators and the public.

Mortgage Rates Down For 3rd Straight Week
Tuesday Jan 25, 2005 2:20 PM EST
Weekly mortgage rates report.

Home Sales Continue To Climb While Affordability Declines
Thursday Jan 27, 2005 1:31 PM EST
The National Association of Realtors confirms that houses sold at a record pace in 2004.

FEBRUARY 2005 MORTGAGE NEWS
Clean Up That Offer To Purchase
Tuesday Feb 1, 2005 1:13 PM EST
A clean offer to purchase is more likely to meet with success than one that is cluttered with contingencies.

Mortgage Rates Down For 4th Straight Week
Tuesday Feb 1, 2005 1:32 PM EST
Mortgage Rates Fall Again.

Clean Up That Offer To Purchase - Part II
Thursday Feb 3, 2005 10:10 AM EST
There are still more ways to clean up an offer. The bottom line is not to give up those important contingencies, but find a way to make them work for everyone involved.

Home Purchase Contingencies III
Wed, 9 Feb 2005 11:09 EST
Enhance Your Offer Or Torpedo It? There Are Choices To Be Made.

Mortgage Study - Americans Will Carry Mortgage Into Golden Years
Wed, 9 Feb 2005 11:15 EST
Harvard study shows that housing values, equity, and especially housing debt are increasing regardless of homeowner age.

Freddie Mac Chief Economist Releases February Outlook
Fri, 11 Feb 2005 10:22 EST
Freddie Mac Economic and Housing Market Outlook continues optimistic in spite or maybe because of the Fed’s continuing moves to tighten credit.

Mortgage Rates Fall Again
Friday Feb 11, 2005 11:16 AM EST
Mortgage Rates Are Down Again.

Mortgage Rates May Be Down… Or Up ?
Wednesday Feb 16, 2005 4:05 PM EST
Mortgage Rates Fall According To Freddie Mac.

Survey Shows Record Home Price Apprectiation - But Not Everywhere
Wed, 16 Feb 2005 16:08 EST
A record number of metropolitan areas hit the jackpot in house price appreciation in 2004. But the big gains were not shared by all.

Understanding Your Credit Score
Mon, 21 Feb 2005 10:06 EST
Knowing your credit score and how it is calculated is increasingly important when going for that big loan.

Understanding Your Credit Score - Part 2
Tue, 22 Feb 2005 14:56 EST
Whether credit scoring works for you or again’ you, it is probably here to stay. Understand what it does for and to you, and improve that score whenever you can.

Greenspan Asks Again For Limits On Government Sponsored Enterprises Portfolios
Fri, 28 Oct 2005 11:21:41 EST
Federal Reserve Board Chairman Alan Greenspan still wants Freddie and Fannie reigned in. With all that has happened in the last year, his words may carry new weight.

Mortgage Rates Shift Direction For The First Time In 2005
Thu, 24 Feb 2005 10:24 EST
Mortgage rates for the first time in 2005.

How Does Your Credit Report Look In The Scheme Of Things?
Thu, 24 Feb 2005 10:28 EST
FairIsaac Corporation, the credit scoring company, has painted a picture of the American credit consumer. Apparently we are far more responsible than anyone thought.

Eminent Domain - Your Home Is Your Castle !
Wed, 16 Mar 2005 14:32:58 EST
An eminent domain case makes it to the Supreme Court. While the Court may be months away from a decision, public protests and the resulting media coverage is turning the spotlight on a 225 year-old-process with a 50-year-old twist.

MARCH 2005 MORTGAGE NEWS
Mortgage Rates Up For Second Week
Wed, 2 Mar 2005 14:55:03 EST
Both Freddie Mac and the Mortgage Bankers Association (MBA) recorded increases in interest rates for the weeks ended February 24 and February 25 respectively.

Housing Bubble? Home Price Decelaration Noted By OFHEO
Wed, 2 Mar 2005 15:09:40 EST
The housing bubble is bursting, the sky is falling, or maybe it’s just an adjustment from some semi-crazy third quarter numbers. OFHEOs year end report on same house price appreciation is out.

Title Insurance - The Other Insurance On Your Settlement Statement
Mon, 7 Mar 2005 10:41:34 EST
That other insurance on the settlement statement protects your lender. But for short money you can protect the title of your home from all sorts of possibilities.

Mortgage Phishing - The Grand Art of Hooking a Sucker
Mon, 7 Mar 2005 17:28:56 EST
Mortgage Phishing - The Grand Art of Hooking a Sucker

Second Homes - Vacation Homes and Investment Property Now 1/3 of Market
Tue, 8 Mar 2005 11:39:01 EST
Second homes constitute a much larger part of the housing market than anyone expected. Investors, apparently, have never been considered as a major piece of that market.

Mortgage Rates Even More Mixed Than Usual
Thu, 10 Mar 2005 09:36:57 EST
Mortgage Rates Even More Mixed Than Usual

Limited Service Real Estate Offices (Flat Fee MLS and FSBO Websites) Provoking Backlash
Mon, 14 Mar 2005 11:25:52 EST
Limited Service Real Estate Offices draw fire over services such as For Sale By Owner Websites and Flat Fee MLS Listings.

Real Estate Market - Freddie Mac Housing Outlook
Mon, 14 Mar 2005 11:39:24 EST
Freddie issues its monthly Economic Outlook report adding another voice to the chorus predicting changes, but gradual ones, to home sales and interest rates.

Home Appraisal 101 - What is Inside Your Appraisal?
Wed, 16 Mar 2005 15:01:10 EST
You paid for an appraisal when you purchased your home, now learn what inside your home appraisal

Mortgage Rates Up For Week Ended March 10
Wed, 16 Mar 2005 15:36:21 EST
Mortgage Rates Up For Week Ended March 10.

Residential Mortgage Foreclosure and Delinquent Payments Decline
Fri, 18 Mar 2005 10:23:45 EST
New Mortgage Bankers Association survey shows decreases, in some cases dramatic ones, in the rate of late mortgage payments and pending foreclosures.

Appraisal 101 - How a Appraiser Attaches Home Value
Fri, 25 Mar 2005 11:21:01 EST
An appraisal is more a mathematical exercise than a judgment. Work through, with us, an example of how an appraiser ultimately attaches a value to a property.

Mortgage Rates Reach A Seven Month High
Thu, 24 Mar 2005 09:12:27 EST
Mortgage Rates Continue To Rise

Fannie Mae Misses Year-End Report Deadline
Mon, 28 Mar 2005 09:25:17 EST
Fannie misses SEC deadline while OFHEO official hints at more restrictions.

Virginia Addresses Eminent Domain
Mon, 28 Mar 2005 09:29:35 EST
Virginia passes law to redress eminent domain pain - sort of.

Title Insurance and Homebuilders - An Unholy Alliance?
Tue, 29 Mar 2005 12:55:36 EST
Title insurance - or at least the marketing of it is now under investigation. Every sector from title insurers to real estate brokers is getting a close look from officials in nearly a dozen states so far.

Congressman Oxley Weighs In On Real Estate Industry
Wed, 30 Mar 2005 10:42:04 EST
Congressional Reps Oxley and Frank ask GAO to weigh in on competition in the real estate industry. One can’t help but wonder why.

Mortgage Rates Nearing One Year High
Thu, 31 Mar 2005 09:39:10 EST
Mortgage rates at highest level since July 2004.

APRIL 2005 MORTGAGE NEWS
Ameriquest Mortgage Faces Widespread Questions About Lending Practices
Fri, 1 Apr 2005 16:06:07 EST
The Super Bowl ad was pretty funny, but regulators in 25 states are not laughing at allegations about Ameriquest Mortgage lending practices.

February New Home Sales Still At Historic Highs
Fri, 1 Apr 2005 16:14:44 EST
HUD and the Census Department report the market for new homes continues strong.

Affinity Programs: With Some, Charity Begins At Home
Wed, 6 Apr 2005 10:22:46 EST
Long a way to painlessly support a favorite cause, affinity programs can now put money in your own pocket when buying or selling, even financing a home.

Mortgage Rates Up, Down, Take Your Pick
Wed, 6 Apr 2005 15:27:03 EST
Freddie Mac and the Mortgage Banker’s Association could hardly have disagreed more over the direction mortgage rates took for the week ending March 31 and April 1 respectively.

Mortgage Lender Fraud - Consumers Not the Only Victims
Mon, 11 Apr 2005 15:05:48 EST
Homeowners are not the only victims of mortgage fraud. Banks, mortgage companies and Government Sponsored Enterprises, i.e. Freddie and Fannie, suffer huge loses too.

Mortgage Rates Hold Under Six Percent
Wed, 13 Apr 2005 15:16:37 EST
Weekly Mortgage Rates Survey - Freddie Mac and Mortgage Bankers Association

Time To Talk About Those Free Credit Reports Again
Wed, 13 Apr 2005 15:32:27 EST
Another region of the country is now eligible for free credit reports and the need to review your own becomes ever more apparent.

Freddie Mac Continues To See A Jolly Good Year For Real Estate
Fri, 15 Apr 2005 15:56:35 EST
Monthly Freddie Mac Economic Outlook continues to see home sales, housing starts, and interest rates favorable for the real estate industry.

Housing Starts Take a Tumble According To HUD and US Census Bureau
Wed, 20 Apr 2005 10:08:27 EST
HUD and the Census Bureau issue what may be sobering news about housing starts.

Mortgage Rates Continue Recent Decline
Wed, 20 Apr 2005 17:11:00 EST
Mortgage Rates Continue Recent Decline

Fannie Mae Holds Dividend At Reduced Q1 Rate
Thu, 21 Apr 2005 09:59:42 EST
The fortunes of Fannie Mae stockholders are not looking up, but CEOs of both Freddie Mac and Fannie Mae fight on.

Appraisal Fraud: A Need To Sort Out The Victims From The Perps?
Mon, 25 Apr 2005 15:27:05 EST
Appraisers have taken the lead in asking for relief from pressures that some say may be leading to a full-scale appraisal fraud scandal.

mortgage rates rise
Mon, 25 Apr 2005 15:57:29 EST
Mortgage Rates Continue Recent Decline

Think Tank Report Paints Picture of Mortgage Appraisal Fraud
Fri, 27 May 2005 09:14:40 EST
Demos, a private research firm, has issued a stunning report on mortgage appraisal fraud; the reasons behind it, the ramifications, and some possible remedies. Part two of a multi-part series.

Mortgage Rates Down and Home Sales Up - Who Says Boring Is Bad?
Wed, 27 Apr 2005 14:46:22 EST
Mortgage Rates Down and Home Sales Up for week ending April 22, 2005.

MAY 2005 MORTGAGE NEWS
Report Suggests Remedies for Appraisal Fraud
Mon, 2 May 2005 15:52:07 EST
In this final look at the Demos report on appraisal fraud, there are some suggestions for addressing the problem.

HUD Pushes Mortgage Lenders To Avoid Foreclosure Losses
Tue, 3 May 2005 15:08:17 EST
HUD announces programs that both reward and punish lenders when dealing with defaults on FHA insured mortgages.

Mortgage Rates Decline For Fourth Consecutive Week
Wed, 4 May 2005 16:24:11 EST
Mortgage Interest Rates Fall For the Fourth Consecutive Week.

Studies Question Housing Costs, Conditions, Ownership
Tue, 10 May 2005 13:48:29 EST
Homeownership is no longer out of the reach of most Americans. Is this perhaps not a really good thing? Two recent studies point out some pitfalls.

Appraisers Speak Out On Pressure, Fraud, and Reform
Wed, 11 May 2005 17:49:56 EST
Appraisers and others weigh in on the pressure they are under and their possibly tenuous legal situation, and some suggestions for reform.

Weekly Mortgage Rates Mixed But Mortgage Origination Remains High
Wed, 11 May 2005 18:03:54 EST
Mortgage Rates Weekly Summary.

Construction, Home Sales, Prices - Everything Will Be Up But Mortgage Rates
Thu, 12 May 2005 15:21:11 EST
The April Economic and Housing Outlook by Freddie Mac is full of good news for nearly everyone connected with the housing industry.

Housing Bubble To Bust? FDIC Certainly Hopes Not
Tue, 17 May 2005 12:17:28 EST
FDIC has now issued two recent reports to say the housing boom won’t go bust because, well gosh, it hardly ever has.

Weekly Mortgage Rates Mixed
Wed, 18 May 2005 17:31:52 EST
Mortgage Rates Mixed

Fannie Mae Misses Another Financial Deadline
Thu, 19 May 2005 10:55:34 EST
Fannie Mae filed its second consecutive form 12b-25 form with Securities and Exchange Commission (SEC).

Risk Management Guide For Home Equity Loans Issued By Bank Regulators
Fri, 20 May 2005 15:03:07 EST
The nations chief financial regulators have issued new guidelines to banks and credit unions warning of risk factors in home equity lending.

Greenspan Renews Attack on Freddie Mac, Fannie Mae
Fri, 20 May 2005 15:22:59 EST
Federal Reserve Chairman Alan Greenspan has spoken out again to urge Congress to rein in the size of the GSE’s, Fannie Mae and Freddie Mac, mortgage portfolios.

National Association of Realtors Fighting Fires On Several Fronts
Fri, 27 May 2005 15:06:57 EST
The National Association of Realtors is suffering from a few occasions of disquiet coming from political areas where it may never have expected such problems.

Most Mortgage Rates Down Again; Looking Good vs. 2004 Levels
Wed, 25 May 2005 17:17:14 EST
Weekly Mortgage Rates Summary Report

Two Monthly Reports Show No Lag in Home Sales
Thu, 26 May 2005 11:18:42 EST
Both NAR and the Commerce and Housing and Urban Development Department agree that the housing market shows no sign of slowing.

(Correction) - National Association of Realtors Fighting Fires on Several Fronts
Fri, 27 May 2005 15:12:50 EST
Correction

Home Staging - Still A Relevant Tactic in Lots of Places
Tue, 31 May 2005 15:14:44 EST
Not every market belongs to the sellers. Sometimes it takes a lot of work to make a house competitive. That is where home staging comes in.

JUNE 2005 MORTGAGE NEWS
Home Loan Mortgage Rates Continue To Drop
Wed, 1 Jun 2005 15:27:29 EST
Weekly mortgage rates report.

Southern U.S. Now Eligible For Free Credit Reports
Wed, 1 Jun 2005 15:18:21 EST
The South is now eligible for free credit reports. If you follow the news you know that tracking your credit is even more critical now than it was two months ago when we last covered this story.

Mortgage Servicing Rights: Traded Like Baseball Cards?
Mon, 6 Jun 2005 15:18:05 EST
Your mortgage might be sold but the rights to service it are more likely to be transferred at some time during the life of the loan. What does this mean and should you be concerned?

Making Money Is Not The Best Reason To Own A House
Mon, 6 Jun 2005 15:47:14 EST
Growing group of volunteers are working to provide severely wounded American troops with the best kind of house - their own.

Mortgage Rates Mixed But General Trend Still Downward
Wed, 8 Jun 2005 15:37:12 EST
Weekly mortgage rates report.

Fannie Mae Authorizes Purchase of 40 Year Mortgage Loans
Thu, 9 Jun 2005 16:49:31 EST
A new Fannie Mae initiative opens secondary market to 40-year loans.

Freddie Mac Issues June Economic Prognostication
Fri, 10 Jun 2005 17:06:22 EST
Freddie Macs monthly economic report emphasizes the good, the bad, and the who knows?

Become A Real Estate Agent During The Housing Boom and Get Rich Quick? Think Again.
Wed, 17 Aug 2005 14:45:23 EST
Every boom real estate market brings a boom in newly minted agents. A few words of caution from a somewhat weary veteran.

As Population Ages, Reverse Mortgages May Finally Catch On
Mon, 20 Jun 2005 10:31:51 EST
Expect reverse mortgages to grow as Boomers age. They are still pretty unique, but can solve some serious senior issues.

Mortgage Rates Reach 2005 Low
Wed, 15 Jun 2005 15:18:49 EST
Weekly Mortgage Rates Summary Report

FHA, Freddie Move To Protect Troops From Identity Theft - Foreclosure
Fri, 17 Jun 2005 11:52:04 EST
Freddie Mac and FHA announce two small changes that could make a difference for armed forces service men and women.

Reverse Mortgage Revisited
Mon, 20 Jun 2005 10:57:59 EST
Correction to previously posted story on reverse mortgages.

Mortgage Rates Up Across The Board
Wed, 22 Jun 2005 16:32:03 EST
Weekly Mortgage Rates Summary Report

Bankers and Real Estate Agents Continue Turf Battle
Wed, 22 Jun 2005 17:00:19 EST
The perennial banking v. real estate battle promises to be an interesting spectator sport this year.

Supreme Court Upholds Expanded Concept of Eminent Domain
Fri, 24 Jun 2005 14:22:04 EST
Supreme Court widens concept of public purpose in decision on the Right of Eminent Domain.

Mortgage Foreclosures and Delinquent Payments Decline
Fri, 24 Jun 2005 16:31:16 EST
While most mortgages are being paid on time there is a real difference in the performance of prime and sub prime loans.

Mortgage Rates Down But Directionless Overall
Wed, 29 Jun 2005 15:21:48 EST
Weekly mortgage rates report.

Harvard Finds Homes Less Affordable But Housing Bubble Unlikely To Burst
Tue, 19 Jul 2005 15:49:31 EST
Harvards Joint Center on Housing finds little to fuel fears of a bursting bubble but lots of disheartening information about housing affordability.

JULY 2005 MORTGAGE NEWS
Mortgage Short Sale - An Exit Strategy or an Investment Opportunity?
Tue, 2 Aug 2005 11:22:44 EST
A short sale is only one of several options available to lenders when a loan defaults. It might be, however, the least painful to everyone concerned.

Mortgage Rates Mixed, But Refinancing Is Not Going Away
Wed, 6 Jul 2005 17:37:50 EST
Weekly mortgage rates report.

Freddie Mac Report Shows Strong Housing Data
Mon, 11 Jul 2005 16:28:13 EST
The housing sector is continuing to be a major driver of the U.S. Economy according to a very optimistic July report issued by Freddie Mac.

Amortization Game - Fun For the Financially Obsessed
Mon, 11 Jul 2005 17:54:07 EST
Your own personal amortization table may inspire you to use your mortgage as a savings account.

Mortgage Activity Down Slightly As Mortgage Rates Rise
Thu, 14 Jul 2005 10:11:29 EST
Weekly mortgage rates report.

Option Mortgage - Intriguing New Product Or Ticking Timb Bomb?
Tue, 19 Jul 2005 14:44:10 EST
Option style mortgage offers plenty of choices to borrowers. Initial affordability is a lure but beware what may be on the hook.

New Study Puts Real Numbers On Mortgage Risk
Tue, 19 Jul 2005 15:28:37 EST
University of Virginia study comes to an obvious conclusion about risk and interest rates but does provide some new ways of measuring risk factors.

Mortgage Rates - Has The Worm Turned?
Wed, 20 Jul 2005 16:11:47 EST
Weekly mortgage rates report.

High End Home Owners Are Driving Home Improvements
Thu, 21 Jul 2005 14:00:11 EST
Americans are spending big bucks to maintain and improve their homes. Still, high income owners are doing the most to improve their position in the housing market.

Buying A House To Sell A House
Fri, 22 Jul 2005 16:13:40 EST
Before buyers buy they should look at the house through the eyes of the market they will have to please in five or ten years.

Eminent Domain Ruling Spurs Flurry Of Legislation
Mon, 25 Jul 2005 17:18:24 EST
The Supreme Court June decision in Kelo v. New London is driving a hopper-full of legislation on both the state and federal level.

Average Mortgage Rates Continue To Rise
Wed, 27 Jul 2005 14:08:56 EST
Weekly mortgage rates report.

Housing Starts, Home Sales Continue at a Record Pace
Fri, 5 Aug 2005 17:09:25 EST
Records for home prices and sales activity continue to fall although there are a few weak spots since last months reports.

AUGUST 2005 MORTGAGE NEWS
Foreclosure Happens, But There Are Solutions
Tue, 2 Aug 2005 14:49:38 EST
Foreclosure is the last thing a homeowner thinks about when giving a mortgage. But it happens. We will discuss the process and some solutions to a desperate situation.

Stop Foreclosure By Confronting It Head-On
Tue, 2 Aug 2005 16:56:29 EST
Delinquency rates are low and foreclosure is not something most people worry about, but stuff happens and it is good to know the options and alternatives.

Mortgage Rates Maintain Upward Climb
Wed, 3 Aug 2005 14:48:30 EST
Weekly mortgage rates report.

Refinancing May Be Pumping Billions Into Economy
Fri, 5 Aug 2005 18:20:26 EST
Americans continue to pull equity out of their homes, presumably helping to drive the U.S. economy.

Piggybacks Arouse Interest - And Concern
Mon, 19 Dec 2005 17:56:09 EST
Private mortgage insurance companies are beginning to feel the pinch of piggyback or blended mortgages.

Mortgage Rates Up, Applications Down Last Week
Wed, 10 Aug 2005 17:26:42 EST
Weekly mortgage rates report.

Study Finds Housing Increasingly Unaffordable
Thu, 11 Aug 2005 17:16:05 EST
According to the National Housing Conference, wages are clearly not keeping up with the cost of housing. So where are lower paid workers, many essential to their communities, supposed to lay their heads?

Freddie Mac Issues August Economic Outlook Report
Mon, 15 Aug 2005 11:48:23 EST
Freddie Macs August report carries cautions about what could happen, but basically continues to project only gradual changes in rates, sales, and home prices.

Fannie Mae Fails To File Quarterly Report - Again
Mon, 15 Aug 2005 14:41:27 EST
Fannie Mae continues to struggle with its massive accounting reinstatement and the New York Stock Exchange is getting restless.

Mortgage Rates Up For Week While Activity Continues To Slow
Thu, 18 Aug 2005 14:40:34 EST
Weekly mortgage rates report.

In Trouble With Your Mortgage? Call Your Lender - Now!
Fri, 19 Aug 2005 17:26:59 EST
There is never a shortage of sharks waiting to take advantage of the troubled. If you are having problems with your mortgage payments, please listen to us, not them.

Are Mortgage Pre-Approvals All They Are Trumped Up To Be?
Mon, 22 Aug 2005 17:19:27 EST
Do mortgage pre-approvals really a guarantee a smooth transaction? We would like to hear a yes or no from our readers.

Extreme Makeover Home Edition Teams Up With Homes For Our Troops
Sun, 25 Sep 2005 19:43:05 EST
An update on a bunch of volunteers who are making a difference for wounded Iraq War vets - one house at a time.

Mortgage Rates Reverse Previous Six-Week Climb
Wed, 24 Aug 2005 15:54:35 EST
Weekly mortgage rates report.

Hurricane Katrina Victims Get Relief From Fannie and Freddie
Wed, 31 Aug 2005 13:45:48 EST
Fannie Mae and Freddie Mac put a small candle in the window for hurricane victims.

Mortgage Rates Down For Second Week
Wed, 31 Aug 2005 15:33:14 EST
Weekly mortgage rates report.

SEPTEMBER 2005 MORTGAGE NEWS
Greenspan Warns Than Housing Prices Will Simmer Down
Thu, 1 Sep 2005 11:36:49 EST
Chairman Greenspan warns again that housing prices will cool and take parts of the economy along.

Mortgage Rates Fall For Third Week In A Row
Wed, 7 Sep 2005 15:37:26 EST
Weekly mortgage rates report.

Free Credit Reports For All - But Watch Your Step
Thu, 8 Sep 2005 10:03:50 EST
Now everyone can get a free credit report - just watch your typing fingers.

Private Mortgage Insurance - Facts From The Source
Thu, 8 Sep 2005 13:36:38 EST
After a bit of a paper chase we finally get some officials answers about how PMI works.

Another Report on Spiraling Housing Prices
Tue, 25 Oct 2005 10:11:54 EST
Freddie Mac quarterly report on housing prices show continued growth propelled by dropping interest rates in the second quarter.

Time To Review Your Homeowners and Flood Insurance Coverage
Fri, 16 Sep 2005 10:51:26 EST
Katrina, not to mention Charley, Ivan, western brush fires, and California mud slides should be prompting you to check your insurance coverage.

Freddie Mac September Outlook - Its All About Katrina
Thu, 15 Sep 2005 11:19:51 EST
Freddie Mac sheds some light on the effects of Hurricane Katrina on the housing market and economy.

Freddie Mac and MBA Mortgage Rates Survey Directionless
Thu, 15 Sep 2005 11:27:16 EST
Weekly mortgage rates report.

So Should You Pay PMI or Take Out a Piggyback Mortgage?
Mon, 19 Sep 2005 15:18:14 EST
Piggy backs make more financial sense at present than private mortgage insurance, but that can change with interest rates and/or pending legislation.

Mortgage Rates Up Across the Board
Wed, 21 Sep 2005 18:19:46 EST
Weekly Mortgage Summary Report.

HUD and Commerce Say Housing Starts Drop Slightly
Thu, 22 Sep 2005 16:54:33 EST
Housing starts are reported off in the last month, but the single family market still shows that builders continue to be optimistic.

Read Those Homeowner and Flood Insurance Policies Before It Is Too Late
Tue, 27 Sep 2005 14:10:50 EST
Actual cash value versus replacement costs; deductibles, and valued policies are only a few of the things you need to know as an informed consumer of homeowner and flood insurance.

Mortgage Rates and Home Sales Both Up In Recent Reports
Wed, 28 Sep 2005 22:09:07 EST
Mortgage rates rose, home sales and prices were also higher. But are mortgage applications the canary in the coal mine?

OCTOBER 2005 MORTGAGE NEWS
So You Want To Build A House
Tue, 4 Oct 2005 17:26:44 EST
Building a home is an adventure but, with enough information and some innovative new housing options, perhaps one with a happy ending.

ARMs Narrow Yield Curve in Latest Mortgage Rates Survey
Wed, 12 Oct 2005 14:38:44 EST
Weekly Mortgage Survey - Week Ending September 28, 2005

Realtors Under Fire From DOJ, GAO, And That is Just the Beginning
Mon, 10 Oct 2005 13:20:04 EST
Seems like a lot of people are targeting the National Association of Realtors. The Department of Justice heads the list.

Manufactured Housing And Homes-In-A-Box are Viable Routes To Home Ownership
Mon, 10 Oct 2005 13:05:07 EST
While traditional one-stud-at-a-time construction remains the norm, a potential build-it-myselfer would do well to check out options to make those dreams come true.

Congress Is Also On The Case - NARs Troubles, Continued
Wed, 12 Oct 2005 12:31:48 EST
A Government Accountability Office Report suggests reputation and service may be more relevant to creating competition in the real estate than commissions.

Fixed Mortgage Rates Nudge 6 Percent For First Time Since Spring
Wed, 12 Oct 2005 14:40:39 EST
Weekly Mortgage Survey - Week Ending October 6, 2005

Freddie Mac Anticipates Huge Hurricane Related Losses
Wed, 12 Oct 2005 15:31:24 EST
Freddie Mac has tallied up its losses to Rita and Katrina and they will be substantial.

Rita Joins Katrina As Topic of Freddie Mac Monthly Reports
Mon, 17 Oct 2005 14:17:54 EST
Although acknowledging hurricanes impact, Freddie Mac still sees a rosy housing picture.

Mortgage Rates Top 6 Percent
Tue, 8 Nov 2005 15:38:18 EST
Weekly Mortgage Survey - Week Ending October 13, 2005

Are Real Estate Commissions at the Root of NAR Problems?
Fri, 21 Oct 2005 11:59:10 EST
Are commissions the reason for the recent attacks on the National Association of Realtors and on agents. Hmmmm - there does seem to be a pattern.

Modular Homes and Prefab Housing Can Save Time and Money
Fri, 21 Oct 2005 12:55:34 EST
Modular and panelized construction using a variety of methods and materials offer time and cost saving alternatives for homeowners. Even IKEA is getting into the act.

Home Mortgage Deduction Under Attack By Presidential Panel
Mon, 7 Nov 2005 15:02:02 EST
Homeowners may lose a cherished tax deduction if a presidential panel gets its way. But history says it is unlikely to happen.

NAR Sees Soft Landing as Housing Bubble Transitions To Expansion
Wed, 26 Oct 2005 14:43:30 EST
NAR report sees an ultimate soft landing as bubble begins to soften and fallout from Katrina benefits portions of the sales market.

The 30 Fixed Mortgage Rates Now Firmly Over 6 Percent
Tue, 8 Nov 2005 15:40:15 EST
Weekly Mortgage Survey - Week Ending October 20, 2005

Lopsided House Vote Seeks To Regulate Freddie Mac and Fannie Mae
Fri, 28 Oct 2005 11:41:39 EST
The House of Representatives has approved new oversight for Freddie Mac and Fannie Mae. Senate approval appears a long way off.

MortgageBrokers.com Enters the $3.8 Trillion United States Mortgage Market — Executes LOI to Acquire NJ-Based Mortgage Company
Would Generate $400 Million in Mortgage Origination Volume and $6.2 Million in Gross Revenues

NEW YORK, NY and TORONTO — (MARKET WIRE) — 03/20/2006 — MortgageBrokers.com Inc., a subsidiary of MortgageBrokers.com Holdings Inc. (OTC BB: MBKR), announced today that it has a signed a Letter of Intent (LOI) to acquire a privately held New Jersey-based mortgage broker and banker with licenses in seven states in the USA.

Alex Haditaghi, CEO of MortgageBrokers.com, stated, “This proposed acquisition will provide MortgageBrokers.com with a critical point of entry in the lucrative $3.8 Trillion U.S. mortgage market. With an established footprint on the East Coast, this acquisition, once completed, could potentially bring $400 million in mortgage origination volume and $6.2 million in gross revenues to MortgageBrokers.com.”

About MortgageBrokers.com

MortgageBrokers.com is a mortgage brokerage brand and technology firm working on the consolidation of over 40,000 small and medium mortgage broker (SME) shops in North America. MortgageBrokers.com’s consolidation strategy is based on a vision of combining SME brokerages into a scalable operating entity that can better compete in the industry under one recognizable brand. The prime objective is to improve the economic performance of the combined companies though the reduction of operating costs, expansion of a national brand, diversification of product lines and investment in technology.

MortgageBrokers.com is offering an equity participation in its public company, in exchange for mortgage origination books of business, providing mortgage brokers with ownership, a career exit strategy and a retention tool unmatched in the North American Mortgage Market.

Posted on Sun, Feb. 19, 2006
Buyers, beware of online mortgage calculators
BINYAMIN APPELBAUM

It seems like a simple question: What is the most expensive home you can afford?

Nearly every mortgage lender offers a calculator on its Web site. Enter your income, your debts and your savings, and learn the top of your price range.

But the number on the screen may be misleading.

Input an income of $56,400, the average for the Charlotte area, and the estimates from some of the nation’s largest lenders range from about $150,000 to more than $300,000, the Observer found in using the calculators last week.

At the high end of that scale, what the calculator calls affordable is far more than any financial expert says you should spend on a home. Shoppers who use the figure to guide their search risk buying a home they may not be able to afford.

Lenders, who make more money when people take larger loans, say the calculators are intended to offer broad estimates, not personalized advice. They emphasize that people should contact a lender to determine what they can afford.

Consumer advocates say people should also contact a third party.

“You need to get advice from someone who doesn’t have a stake in the transaction,” said Floyd Davis, the CEO of Community Link, a Charlotte nonprofit that counsels people on the home-buying process.

Setting a price range is often the first step in buying a home. And it’s a smart one. Experts say people who skip that step can get in trouble by falling in love with a home they can’t afford, then stretching for a loan so they can buy it anyway.

The Web site calculators offer an informal way to gauge your range before you start shopping. But calculators that return higher estimates may lead shoppers into the same problem of believing they can comfortably afford a home when in fact they would be stretching.

There is no golden formula for determining what is affordable; it depends on the individual. But studies show that as homeowners devote a higher share of income to debt payments, they face a progressively greater chance of defaulting on their loan and losing their home.

The estimates offered by online calculators are created in a two-step process.

First the calculator figures how much you can spend on housing each month, based on personal financial information you provide. Then the calculator figures how much of that payment goes toward principal, and how much is consumed by interest and other fees.

While the calculation of interest and fees is fairly constant, companies program their calculators with very different assumptions about how much of your income is safe to spend on housing costs.

Most conventional lenders cap spending on all debt payments at 36 percent of gross monthly income. That’s the ratio used by most calculators, too, including a pair of widely used calculators from two third-party providers, Leadfusion Inc. of San Diego and KJE Financial Solutions of Minneapolis.

But a calculator offered by Citigroup, for example, assumes that people can spend 55 percent of their monthly income on debt payments.

“The calculator is designed to provide a basic projection of consumers’ buying potential,” Mark Rodgers, a Citigroup spokesman, said in an e-mail. “Our built-in debt-to-income ratio calculates the high end of affordability.”

Wachovia Corp.’s calculator assumes people can spend more than 40 percent of their income on debt payments. A company spokeswoman said the calculator gave customers an accurate sense of how much Wachovia might lend them, and that feedback over its five-year existence was strongly positive.

Bank of America Corp. provides the Leadfusion calculator on its Web site.

People seeking guidance from a third party will find little help from the U.S. government.

The Web site of the Department of Housing and Urban Development refers surfers to a calculator that still assumes conventional loans require a down payment of at least 20 percent (They don’t).

Fannie Mae, one of the quasi-governmental entities that purchases loans from lenders, offers a calculator that advises users they can afford monthly debt payments of up to 50 percent of their income.

That standard contrasts with Fannie Mae’s own business practices. Historically, the company only purchased loans where lenders limited their customers’ total debt payments to 36 percent of income. The reason is to reduce the risk of default.

Fannie Mae did not return calls for comment about the disparity.

Consolidation, lay-offs hit US mortgage industry
Fri Feb 24, 2006 3:09 PM ET
By Julie Haviv

NEW YORK, Feb 24 (Reuters) - A major transition is underway in the U.S. mortgage lending industry, with consolidations and lay-offs at the forefront as companies try to deal with waning demand for home loans.

This shift is expected to pick up steam in 2006 if the housing market, as widely expected, cools off from its record-breaking five-year run.

“There are some very important signals emerging in that we have seen some pretty good companies go on the block for sale or have been sold recently, which is a clear sign that consolidation is seriously underway,” said Douglas Duncan, chief economist at the Mortgage Bankers Association, an industry trade group.

Duncan said developments at two mid-sized “good performing” companies may hint to a wider trend.

Waterfield Mortgage Co. recently announced that it will sell its mortgage banking business and Irwin Financial Corp. said last month it hired JPMorgan to look at selling its conventional first mortgage unit, Irwin Mortgage.

“They just couldn’t get the revenue per loan that the big guys were getting,” he said.

Even the larger firms are poised for a downturn.

Countrywide Financial Corp. , the largest U.S. mortgage lender, recently announced it plans lay-offs for sometime this year, partly in response to lower profits on sales of mortgages.

On its fourth-quarter earnings conference call in late January, the company’s chief executive, Angelo Mozilo, said intense competition should force some smaller lenders out of the market.

Employment in the real estate and mortgage industry peaked at 504,000 in October of last year but fell to 501,000 in December, according the Bureau of Labor Statistics.

That is a noteworthy shift, given that the sector has been gaining jobs over the past five years. Employment stood at 283,000 in March of 2001.

Mortgage rates are expected to continue ratcheting upward from their historic lows, and that will limit lending and refinancing activity, putting more pressure on firms to find new efficiencies, said Duncan.

A week ago, the average 30-year fixed loan reached 6.22 percent. But Duncan expects it to climb to 6.40 percent by the end of 2006, significantly higher than its 2005 low of 5.47 percent.

VOLUME IS EBBING

The U.S. housing market surged for five years, shattering sales and construction records and sending home prices up more than 55 percent on average nationwide.

But now the market has taken on a “survival-of-the-fittest” atmosphere, said Celia Chen, director of housing economics at Moody’s Economy.com, a consulting firm.

“Mortgage lending is an opportunistic business and when business declines, the instinct is to consolidate to become more efficient, and that is what we are seeing,” said Chen.

The MBA’s seasonally adjusted refinancing index, which hit a record level near 10,000 in May of 2003, stood at 1,571.4 for the week ended Feb. 17.

While refinancing has been trending lower over the past few years, the drop in volume for home purchase loans has gained substantial momentum in only the past year.

The MBA’s seasonally adjusted purchase mortgage index– considered a timely gauge on U.S. home sales — stood at 408.7 last week, its lowest level since the week ended Jan. 7, 2005, when the index hit 393.1.

According to Duncan, lenders have been holding “slowdown” meetings with their employees, a move he said historically coincides with a turn in employment.

LENDERS LAST HURRAH?

Mortgage lenders, however, are not ready to throw in the towel just yet and are actively seeking new ways to increase business volume, whether through new loan products or reaching out to untapped markets.

“We have worked hard over the past three years in developing a wide array of products — all credit types, all documentation types, all amortization types and all combinations of first and second mortgages,” said Bob Walters, chief economist at Quicken Loans, an online mortgage lender.

By diversifying its product line, Quicken Loans is able to serve the entire spectrum of clients, said Walters.

“The firms that are focused on one type or another will struggle as the market narrows,” he said.

Friday, March 10, 2006
Mortgage rates surge to 3-year highs
One-year adjustable climbs to 4.3% and the 30-year fixed to 6.2%.

By MATHEW PADILLA
The Orange County Register

Mortgage rates in Orange County this week rose to their highest level in more than three years.

Introductory rates on one of the most popular mortgages – the one-year adjustable – rose to an average 4.3 percent, National Financial News Services said Thursday. That’s the highest since summer of 2002. A year ago, that average rate, based on paying a fee of two points, was 3.5 percent.

Rates on fixed-rate mortgages also have increased. The average rate for a 30-year mortgage – with a fee of one point – is 6.2 percent. That’s the highest since July 2002.

Mortgage rates are rising amid inflation concerns and bond investors’ fears that Japan and Europe are embarking on a campaign of rate increases. Higher rates overseas draw money from U.S. bond markets, pushing up yields on bonds. That causes certain mortgage rates to rise. The Federal Reserve also has been notching up rates since 2004, which pushes up rates on some mortgages.

These days most homebuyers in the county use mortgages with rates that are fixed for a certain period and then adjust to market levels. But these mortgages aren’t the bargain they used to be.

Scott Simon, managing director with Newport Beach-based bond investor Pimco, which buys mortgage-backed bonds, said mortgage volume recently has dipped locally and nationally.

With higher rates making mortgages more expensive, demand for homes has decreased, he said.

“Housing is very much like a super tanker,” he said. “It takes a long time to speed up and a long time to slow down. All the things are in place to make it slow down.”

Strong gains in manufacturing and service industries and higher labor costs have ignited inflation concerns, said Frank Nothaft, chief economist with Freddie Mac.

“The housing industry is now beginning to shift into slower gear, and higher mortgage rates will only strengthen that change,” he said.

Mortgage business changes at Citizens
Tuesday, March 14, 2006
JEAN SPENNER
THE SAGINAW NEWS

Changes in how Flint-based Citizens Banking Corp. delivers mortgage loans and other banking needs are leaving 44 workers looking for other jobs, including six in Saginaw, a regional president said.

Citizens is partnering with PHH Mortgage, a subsidiary of Mount Laurel, N.J.-based PHH Corp., for its mortgage loan business. The bank also is combining its commercial and consumer banking departments, bringing the support staff into one group, said Gary Glaza, regional president for northern Michigan.

Joining with PHH will “improve our delivery service for our residential mortgage clients,” Glaza said.
The realignment “will improve the ability to apply for a loan in the channel of a customer’s choice — with a (loan) officer, Internet or phone,” he said.

Those channels, some with 24-hour daily accessibility, were more limited previously, he said.

Displaced workers — 2 percent of the bank’s 2,258 employees — can apply for other spots in the bank as they open up. The transition should become complete by the middle of the third quarter.

“The employees were informed (Monday),” Glaza said. “It was not a surprise. We’ve been sharing communications that we’ve been working on this initiative. (Monday) was the day we were able to deliver a more specific account of the changes.”

Mortgage Paid Off Sooner With Just a Little Extra Cash

March 07, 2006

by Charles Essmeier

Buying a house is the most expensive thing most people will ever do. Almost 70% of Americans now own their own homes, and that is an all time high. But the commitment to buying a home is a great one; the payment schedule can run as long as forty years, the interest charges will exceed the cost of the house itself and the payments need to be made each and every month. It is no wonder that people who finally pay off their mortgages often throw parties to celebrate.

And while this commitment is a long one, it doesn’t have to be as long as you think. The mortgage document may say that the term of the loan is thirty or forty years, but there is nothing to prevent you or any other homeowner from paying it off sooner. True, most Americans are already paying as much as they can for their houses, but it really isn’t all that hard to cut several years off of the life of the home loan. All it takes is a little bit extra each month.

The typical amortization schedule for a home loan provides for an even number of payments that consist of an identical sum of money each month. But the size of the payment is misleading. Each payment consists partly of mortgage principal, partly of interest, and partly of taxes. In the early years of the mortgage, most of the payment is interest, with only a small portion being applied to the principal. In later years, when most of the interest has been already paid, a larger portion of the payment will apply to the principal.

By adding just a little bit to your payment each month, such as $20 or $50, the term of the mortgage can be reduced quite a bit. As the principal is reduced, so is the interest that is due on the remaining balance. This compounds over time, reducing the overall time of repayment. An extra $50 each month on a $200,000 mortgage at 6.5%, for example, will cut more than three years off of the repayment schedule. Even an extra $20 on the same loan would cut 16 months off of the loan and save more than $14,000 in interest.

Don’t think that you cannot pay off your mortgage sooner just because you don’t have a lot of extra money. It only takes a little bit to make a difference.

Alternatives to walking away from a mortgage
The Debt Adviser by Steve Bucci • Bankrate.com

Dear Debt Adviser,
I have a home valued at $140,000, but I owe approximately $160,000. I have a first mortgage of $121,000 and a second at $38,500. My wife and I are both over 50. We want to sell or get rid of the house. We don’t know what to do. Should we just walk away from it, let them foreclose or file bankruptcy? We want to move to Arizona where our children live and work. We are not proud of this situation, but we need to do something. Thank you for any advice you can give.
– David

Dear David,
I’m so sorry about your situation. As someone in your age bracket, I know how big these financial bumps can be in midlife planning. Still, it’s never too late, so let’s look at your options.

Many people have taken advantage of the seemingly endless increases in home values by taking out home equity loans and lines of credit. For those who overdid it and used up all their equity, or worse borrowed up to their limit with high loan-to-value loans, or negative amortizing mortgages, many could be facing situations similar to your own if housing prices fall or are flat in their areas.

You are currently about $20,000 short of what it would take to pay off your mortgage and second mortgage. However, you might not be able to sell your home for its current value of $140,000; you might have to sell for less. Plus, you may have sales-commission fees and other costs associated with the sale, which will mean the amount you owe and the amount you receive are farther apart than you thought.

Walking away is never a good idea for any type of loan. You would still owe the balance on the loan plus fees you won’t believe. If the bank sells the house you might not like the sales price, and your deficit may be much larger than you think.

You didn’t mention why you must move, only that you need to do something. If your reason really is just a “want,” then I suggest to set up a plan under which you will increase your income or reduce your expenses until you can come up with the mortgage deficit. If you really “need” to move, then you might consider very carefully renting the house. Although not ideal, this might buy you some time for saving the $20,000 or for home values to increase in your area. With the right people in your home and a little luck, you may be able to ride out the storm.

If home values in your area are going down and you don’t expect the area to improve or think it might decline, you might decide it would be better to get out now. If that is the case, you will need to communicate with your lender to let it know that you want out of your mortgage. Your lender might accept a Deed in Lieu of foreclosure, or DIL, which means you would surrender the title to the lender and the lender agrees not to pursue you for the balance owed after the sale of the home. Keep in mind that lenders will usually only agree to a DIL if they believe foreclosure is the only alternative.

Another option is what is called a short sale, where you sell the home at a price acceptable to the lender and the lender agrees to accept the sale price as satisfaction of the mortgage loan. Lenders usually only agree to a short sale if the borrower can document some type of financial problem such as job loss, job transfer or illness.

Depending on your income and assets, you might qualify for Chapter 7 bankruptcy status where your home loan balance could be liquidated. You might want to check with an attorney who does a lot of bankruptcies (as opposed to a real estate attorney) to find out about options.

Whatever you decide to do, be sure you understand the long-term consequences of your actions, including the affect of your choice on your family situation. There is more than money at stake here, your self-image and how your wife and kids see you, might come into play as well.

Good luck!

March 15, 2006
About 123,000 behind on mortgage after Katrina
The Associated Press

NEW ORLEANS — About 123,000 borrowers in Louisiana and Mississippi are behind on their mortgage payments, even though most took advantage of delayed payment plans in the weeks after Hurricane Katrina, according to a banking survey.

During the last quarter of 2005, the percentage of mortgages in the two Gulf Coast states that were 30 or more days past due were significantly higher than either state had reported in recent times, according to the Mortgage Bankers Association.

Yet, fewer of those mortgages were being turned over for foreclosure than in the past, according to the report.

“The foreclosure forbearance program is working,” said Jay Brinkmann, vice president of research and economics for the association.

In the days after Hurricane Katrina, most lenders began offering 90-day payment deferrals. But those delayed payments still counted as being delinquent.

The percentage of Louisiana loans past due 30 or more days past due rose to 24.6 percent in the third quarter, which ended one month after the storm hit. By the fourth quarter.

During the third and fourth quarters of 2004, 7.5 percent of all Louisiana mortgages were past due.

In the third quarter of 2005 in Mississippi, 17.4 percent of all mortgages were delinquent. That number dropped to 16.9 percent in the fourth quarter. During the third and fourth quarters of 2004, 9.2 percent of all Mississippi mortgages were past due.

Between the two states, 76,000 mortgages were 90 days or more past due, which would be subject to foreclosure during normal times.

Brinkmann said the high number of loans 90 or more days past due points to the need “to get a housing and economic development program funded and under way in Louisiana.” Brinkman said that Mississippi was further along on its economic recovery program.

In addition, the states should note the number of homeowners who are continuing to make their mortgage payments despite not being able to occupy their homes, Brinkmann said.

“These people are putting their faith and money into their expectations of a recovery along the Gulf Coast, and those expectations must be met,” he said.

State offers 40-year mortgage

SACRAMENTO
March 17, 2006 6:59am

•  Expects to make homes more affordable

•  For first-time buyers

The California Housing Finance Agency, a state agency that offers Californians special loan programs for first-time homebuyers, is now offering a mortgage that takes as long as 40 years to pay off.

CalHFA says it will let more first-time homebuyers qualify to buy.

“The low fixed interest rate combined with a longer term on our new 40-year fixed mortgage give comfort to first-time homebuyers,” says Theresa Parker, CalHFA executive director, in a written comment.

The new mortgage product follows 2005’s introduction of a mortgage, which has interest-only payments for its first five years. Today, more than a third of CalHFA’s loans are fixed rate interest-only loans, which give borrowers five years of interest-only payments before principal payments begin, and all 35 years stay at the same fixed rate, the agency says.

The fixed rate on the 40-year mortgage will initially be 5.75 percent, about one point below average market rates for 40-year mortgages.

Loans from CalHFA are available to low and moderate-income first-time homebuyers who meet CalHFA income limits and who are purchasing homes that fall at or below CalHFA sales price limits. The sales price and income limits vary by county.

Established in 1975, CalHFA has invested more than $14 billion in non-taxpayer funds to help 135,000 California families buy their homes.

REAL ESTATE
The 35-year mortgage — built to last a lifetime

PATRICK BRETHOUR

CALGARY — The 35-year mortgage has arrived in Canada, giving overstretched first-time buyers the chance to plunge into the heated real estate market — for the long term. But it might just mean that they end up making the last payment from their Canada Pension Plan cheques.

In Canada, the 25-year mortgage has been the standard maximum, but the rapid escalation of housing prices has now shattered that previously ironclad limit. Genworth Financial Canada said yesterday that it will start insuring 35-year and 30-year mortgages, trumping a move by larger rival Canada Mortgage and Housing Corp.

CMHC said three weeks ago that it would begin to insure 30-year terms. Both firms charge fees to insure low down-payment mortgages provided by financial institutions, but do not lend money directly.

Genworth said the mortgages are aimed at buyers who might find it tough to make payments needed to secure a home as real estate skyrockets. “It’s tied to rising prices,” said Peter Vukanovich, president and chief executive officer.

Despite the recent rise in interest rates, major urban centres are still seeing substantial increases, according to figures from the Canadian Real Estate Association. The average cost of resale housing jumped to $490,004 in Vancouver last month from $387,426 a year ago; Calgary’s average price soared to $304,560 from $244, 290; Toronto’s, $353,928 from $334,254.

Genworth is wooing first-time buyers. A basic profile: professionals, likely living in a major urban centre, and “younger in their careers,” says Mr. Vukanovich, who notes that age is not a factor in mortgage decisions.

Toronto-Dominion Bank economist Sébastien Lavoie said the new type of mortgage is yet more proof that the current housing boom is losing steam, as the mortgage industry tries to pump up the rapidly depleting pool of first-time buyers. “There’s no doubt the peak has passed,” Mr. Lavoie said. Earlier efforts to lure first-time buyers — including less restrictive policies on 5-per-cent down payments and lower insurance rates — have been remarkably successful in propping up housing demand, he said.

For consumers willing to sign up for a 35-year mortgage, the extra decade of indebtedness means that monthly payments drop sharply. In a traditional 25-year mortgage with a 6-per-cent interest rate, a home buyer would pay $1,919 a month on a $300,000 mortgage. With a 35-year term, the monthly payment drops to $1,695 — but the total amount paid over the life of the mortgage jumps by $136,387 to $712,213.

Mr. Vukanovich said consumers can trim that bill by making lump-sum payments, or boosting their regular payments over time.

But Fran Smith, executive director of the non-profit Credit Counselling Services of Alberta Ltd., said consumers should think carefully about why they are signing up for a 35-year mortgage before doing so. If a consumer is expecting household income to rise in coming years, such a loan makes sense, she said. Otherwise, it can strain a borrower’s budget, particularly if interest rates jump, or if the borrower has other significant debts.

Genworth’s announcement, which the company says was a year in the making, comes just three weeks after CMHC announced a pilot project for 30-year mortgages. In addition to regular insurance charges, CMHC levies a 0.25-per-cent surcharge for the longer term. Genworth has a lower surcharge, 0.2 per cent, for its insurance of a 30-year as well as the 35-year for a 0.4-per-cent surcharge.

Long-term commitment

For a $300,000 house at 6 per cent interest, a home owner who took out a 35-year mortgage would pay $136,387.80 more than a 25-year term.

25-year amortization

Total paid: $575,825.81

Interest: $275,825.81

35-year amortization

Total paid: $712,213.61

Interest: $412.213.61

SOURCE: GENWORTH FINANCIAL CANADA

US mortgage rates have hit their highest level in nearly four years

Mortgage rates have hit their highest level in nearly four years, and that has a direct impact on home affordability…and home prices.

The average rate on a 30-year fixed mortgage stands at 6.37 percent, up from 5.58 percent last summer.

“I think it’s indisputable that demand in the housing market has declined in the past few months,” says Richard DeKayser, chief economist for National City Corp., an Ohio-based mortgage banker. “It’s very clear that rising interest rates figure very large in that decline.”

Rising rates had already begun to take their toll in the fourth quarter of 2005, when the 30-year mortgage averaged 6.22 percent, according to a report released Monday from Global Insight, a financial information provider, and National City.

The report figures 71 of the 299 largest U.S. housing markets were “extremely overvalued” at year’s end, up from 62 markets a quarter earlier (see table rankings below).

The report arrives at a fair market value based on population, income and interest rates and factors in historical premiums or discounts.

Rates have a direct affect on affordability. For example, a jump in interest rates from 6 percent to 7 percent on a 30-year loan adds about 10 percent to a monthly mortgage bill. A homeowner who financed a loan of $200,000 at 6 percent would pay about $1,200 a month. At 7 percent, the bill would come to $1,330.

As rates rise, homebuyers who were already stretched may start demanding lower prices. “Low rates had offset unaffordability in past years,” said DeKayser.

California and Florida accounted for 18 of the 20 most overvalued markets, with Naples, Fla. leading the way. A median home in Naples now costs $367,100, according to the Office of Federal Housing Enterprise Oversight (OFHEO), nearly double what the study’s authors estimate it should.

Undervalued markets are much less common and tend to be priced only slightly below where they should. They’re especially common in Texas; eight of the top 10 are in the Lone Star State. College Station leads the way — homes there cost 22.7 percent less than what the authors estimate they should fetch.

The table below lists 299 markets tracked by Global Insight and National City. Click on column headings to re-sort; click on state names for more statistics on top cities.

Mortgage rates: Low payments vs. risk
DONNELLE ELLER AND S.P. DINNEN
REGISTER BUSINESS WRITERS

March 19, 2006

On cable TV, seven times each day, 49 times each week, real estate agent Steve Wolvers hawks beautiful homes, below-market interest rates and rock-bottom monthly payments.

Too good to be true?

Not so, says the veteran Re/Max agent, who works with clients to find “creative financing” options that help keep monthly payments low.

“When I tell you there’s 200 different loan options, I mean that,” said the 47-year-old Wolvers, rattling through how interest-only, 3-2-1 buydown and other options work. “Twenty, 30 years ago, everybody said you have to have a 30-year fixed mortgage. In today’s society, I don’t believe that’s true.”

Loans like the ones Wolvers promotes are growing in popularity, experts say. Among the reasons: Higher interest rates, a slower real estate market and increased mobility that makes short-term financing more attractive.

Fantastic deals might get families inside a house, but they also may make it difficult to stay, consumer finance experts say. Iowans, who once trailed the nation in foreclosures, are now losing their homes at a rate that exceeds the national pace, according to statistics. While various reasons are to blame, experts say the growing use of nontraditional loans plays a role.

The loans are “good for the mortgage company and the real estate salespeople, but not much good for anyone else,” said Holmes Foster, a former Iowa Division of Banking superintendent.

Financing options
At his Bondurant office, Wolvers talks knowledgeably about the special financing options he promotes on TV, on his Web site and on fliers.

Among the more fetching options: Interest rates at 1.9 percent, about 4 points below current market rates, and payments as low as $565 for a home selling for $200,000.

Wolvers readily acknowledges that some of the loans are risky. And some require financial discipline from borrowers who may be far from demonstrating it. For example:

• With a 1.9 percent loan, that initial interest rate changes after as little as a year and continues to fluctuate, said Jack Guttentag, professor emeritus of finance at the University of Pennsylvania. At some point, the borrower will be required to pay any accumulated interest and principal. The new payments, Guttentag said, “can result in a nasty payment shock.”

Further, he said, the discounted interest rate could leave a buyer owing more on the house than it’s worth.

• A 100 percent financing, interest-only loan can get families low monthly payments, but they will have no principal repaid unless they pay extra on the mortgage each month.

With those loans and others, most buyers eventually will be walloped with much higher payments, experts say. The unprepared may find themselves either forced to refinance at potentially higher interest rates - or find they must move or seek bankruptcy.

“You will have to pay the piper,” said Jerri Scott, who teaches home-ownership classes for Iowa Citizens for Community Improvement. “Personally, I don’t mind taking a risk with a mutual fund, but not my home.”

Mike Fratantoni, a senior economist at the Mortgage Bankers Association, said a loan resetting to a higher payment can trigger financial distress.

“The question here is if you’re saving $200 a month by having an interest-only loan, what are you doing with that $200?” said Fratantoni. “If you’re not careful with what you’re doing with the extra cash . . . and not planning for that future increase in payment, then you’re in trouble.”

Interest-only loans made up 23 percent of the total dollar loan volume nationwide in the first half of 2005, according to the Mortgage Bankers Association. The loans were 17 percent of the total volume in the second half of 2004.

Finding the right loan
Wolvers said he wants no one to be in a worse financial situation after buying a home from him. An interest-only loan isn’t for everyone, he said, and neither is a 30-year fixed mortgage.

“I don’t believe people have to do a 30-year fixed,” said Wolvers. “I don’t believe it’s to their best advantage.”

Like a mantra, Wolvers repeats that Americans are unlikely to live in a home longer than five to seven years. And if they do, they’re likely to refinance. So consumers are spending money for the guarantee of a long-term fixed rate they are unlikely to fully realize.

“I never had a client come back to me and say, ‘Gosh, Steve, I wish you would have let me pay the banker that extra money,’ ” said Wolvers.

Fratantoni said a home buyer should consider how long the family is likely to live in their home. And they should consider their financial situation now and in the near-term.

Some unconventional financing options might make sense for young professionals whose incomes will grow rapidly. Or for parents who expect to be finished with their children’s college expenses in a few years. It also could make sense to use money saved with the loan to eliminate high-interest consumer debt - credit cards and car and student loans, for instance.

Scott, the home-ownership counselor, acknowledges that the loans could be right for some buyers. But she fears the odds are against spenders who have racked up thousands of dollars in debt.

“You really have to change your life,” she said. “It’s like saying you’re never going to have another drink or smoke another cigarette.

“Serious bad habits and life situations get in the way,” she said.

Wolvers agreed that those who fail to use the money to eliminate debt will find themselves in deeper.

“My biggest frustration is that not everybody does what I show them they’re supposed to do,” said Wolvers. “When they get out of debt by about month six, they’ve figured out they’ve got extra income and they go buy a boat or a new Jet Ski.

“Unfortunately, you can’t control their money. But you sure can educate them,” he said, adding that about 90 percent of those people will use the time to pull themselves out of debt. Those who don’t are likely to be forced to move, said Wolvers.

Job loss
Cindy and Tim Faucz, who bought an Altoona home from Wolvers with an interest-only loan three years ago, said the lower payments have worked well.

They paid extra for the principal until both lost their jobs about a year ago. Then they dropped down to the lower, interest-only payment until they found new jobs, said Cindy Faucz. “I would be afraid of what would have happened with a conventional loan and higher payments,” she said.

A part-time accounting student, Faucz said she knows some people don’t have the discipline to pay extra on their mortgage. She escrows her own taxes and insurance payments, something she likes because she can place the money in an interest-bearing account.

Consumers also may encounter other financial surprises.

Wolvers talks only about the mortgage payment, but the costs of insurance, heating and cooling and upkeep will be considerably higher if consumers use the loans to buy as big a home as they can. And key to Wolvers’ “low monthly costs” are tax abatements that disappear after four to five years.

Scott and Foster say it’s easy for families - especially those who haven’t developed saving habits - to get into trouble. They may not plan for the eventual higher mortgage or tax payments.

“Anyone gets sick or loses a job, there’s no cushion,” said Foster.

Fratantoni said lenders and regulators worry that families are using the unconventional loans to stretch - possibly too far - their purchasing power.

Foster thinks that even a small decrease in home prices could cause “a fairly large calamity across the country.”

“If something happens in the economy that affects wages or employment, we could be a little like New Orleans - the jobs aren’t there, the houses aren’t there, but the mortgages are.”

Said Scott: “For most people, I would be very careful and look at it with an eye toward the worst-case scenario.”

OUR TAKE
Mortgage Science Fiction

By Selena Maranjian (TMF Selena)
March 21, 2006

When most of us think of science fiction, we may imagine life on other planets or animals forming governments. When bankers engage the science fiction gears of their brains, though, they may be thinking of … 50-year mortgages.

You read that right. Our friends at the Treasury Department are once again selling 30-year bonds, leading experts to expect more 40-year mortgages ahead. (This is because long-term loans are generally tied to some correspondingly long-term interest rate.) Some even imagine 50-year mortgages. If you suddenly find yourself intrigued, first consider the pros and cons of such an instrument.

On the plus side, longer mortgages offer lower payments to borrowers. If you want to borrow $200,000 to buy a house, a 15-year fixed-rate mortgage at 6% will mean monthly payments of $1,688. Hike that mortgage up to 30 years, and the payment drops considerably, to $1,200. Of course, longer terms generally mean higher rates, so at 6.25%, the monthly amount would be closer to $1,230, a big difference. This is why so many people opt for 30-year terms — because it’s the only way they can buy their way into a home, or at least the home they want.

On the minus side, longer mortgages mean you pay a heck of a lot more in interest over the term of the loan, and you build up equity very slowly. With a 50-year mortgage, if you buy your home when you’re 40, it may well outlive you. Even if you’re alive, trying to perform the traditional mortgage-burning ceremony upon your last payment may result in an explosion caused by your oxygen tank.

So what should you do? Well, if there’s no other way for you to afford a home, or the home that you simply must buy, then consider a long-term mortgage. There are already some 40-year loans in existence. But plan to refinance into a short-term loan as soon as you can so that you can build more equity.

Also ask yourself whether there’s any way you can swing a shorter-term loan, such as a 30-year one. Many times, the difference in monthly payments won’t be so enormous. A 40-year $200,000 loan at 6.5% would offer payments of $1,180, just $50 less than the 30-year option described above. With some careful budgeting, you might be able to swing the shorter loan.

What will longer mortgages mean for the lending and home industries? Well, they’re likely to attract more borrowers, for one thing. So revenues might rise. An Associated Press article pointed out that “Chris Low, chief economist at FTN Financial, a financial services firm, said longer-dated home loans could prevent a dramatic drop in the housing market because their lengthy payback periods would lower monthly payments at a time when interest rates for other mortgages have risen from historic lows.”

If you’re interested in homebuying and homeowning issues, visit our Home Center, which features lots of money-saving tips and even some special mortgage rates.

Longtime Fool contributor Selena Maranjian does not own shares of any companies mentioned in this article.

Housing Woes: Interest Rate Increases and Foreclosures
Adjustable-Rate Mortgages and Rising Interest Rates Leave Many Americans Staring at Foreclosure
By CHARLIE HERMAN

March 21, 2006 — - Heidi never imagined that she could lose her home outside Dallas. But rising interest rates and skyrocketing monthly mortgage payments have left her staring at foreclosure. She’s just one of many Americans who might be forced to move as the housing market cools.

“I loved my home, and I felt very comfortable here, and my dogs loved it here, and my husband loved it here and this was my home and now we’ve lost it,” she said, trying not to get emotional as she stood in her former kitchen.

The vivacious New York transplant, who, for privacy reasons, did not want her last name used, lost her recently built, 2,800-square-foot, three-bedroom home to foreclosure. Because of rising interest rates, the monthly payments on her adjustable-rate mortgage ballooned over the past several years and made the home unaffordable. It will be auctioned to the highest bidder on April 4 or revert to the bank.

“We couldn’t keep up with the payments,” she explained one dreary, wet Sunday morning in late winter. “The payments went from $1,700 a month almost to $3,000 a month, so this being my first home, my dream home, I had to lose it.”

Not Unique

Heidi’s situation is not unique. She is one of millions of Americans who took out ARMs to purchase a home during the recent housing boom.

As those initially low monthly interest rates started to get reset, homeowners could see their monthly payments rise to levels beyond their ability to pay. Interest rates for nearly a quarter of all mortgage debt, or $2 trillion, will be reset in 2006 and 2007, according to Moody’s Economy.com.

People like Heidi will face the choice of making higher payments, selling their homes or, in the worst cases, foreclosure.

“Once the adjustable rate kicked in, it just got from bad to worse,” Heidi said.

Increasing Delinquencies

As home prices soared at double digit rates during the recent, red-hot housing market, many stretched themselves financially to purchase a home. The use of lower-interest rate ARMs, interest-only mortgages or option-ARMs that allowed home buyers to choose how to pay each month soared during the same period. According to the Mortgage Bankers Association of America, ARMs now represent 25 percent of the more than $8.5 trillion in outstanding loans.

But as interest rates steadily increased over the past year and the explosive growth in housing prices declined, more Americans started to fall behind in their mortgage payments. Doug Duncan, chief economist at the Mortgage Bankers Association, reported last week that delinquencies now total 4.7 percent, up from 4.38 percent a year ago. For homeowners with ARMs, the rate is 5.72 percent, up nearly 1 percent from the previous year.

George Roddy has tracked the real estate industry in the Dallas-Fort Worth region for nearly three decades. For the 18 counties he recently surveyed, delinquency rates were up more than 15 percent for the first quarter of 2006 compared to the same time period last year. Just under half of those will end up in foreclosure proceedings.

“There’s a certain percentage of the population that’s going to be impacted by ARMs as the interest rates go up, impacted by the interest-only loans as the interest rates go up,” he explained. “Even at current interest rates, it’s a chore in some cases to make that monthly payment.”

Ticking Foreclosure Bomb?

“I think it’s a bomb waiting to go off,” said William Apgar, reflecting on the future of interest rate increases for those with ARMs. Apgar has studied foreclosures in Atlanta and Chicago as a lecturer at Harvard’s Kennedy School.

He worried that any hiccup, from medical problems to job loss, combined with a spike in interest rates, could result in disaster. “Foreclosures have been trending up for several years.”

Currently, foreclosure rates are up to nearly 1 percent of current outstanding loans that were made nationwide at the end of 2005, according to the MBAA. That represents a slight increase from September, but was actually down from a year ago.

What to Do

Homeownership advocates remain worried. They see delinquency and foreclosure rates increasing in states like Ohio, Michigan and Georgia.

Ken Wade, CEO of NeighborWorks America, said that homeowners do have options if they fall behind in their monthly payments.

“Early contact with either your mortgage servicer or a housing counselor is critical, because the longer you wait, the less opportunities you have to work out the situation,” Wade explained. “That’s critically important, and oftentimes people don’t seek help until it is really too late.”

Walking Away

Sometimes, however, that may not be enough and the worst can still happen. Heidi negotiated terms with her bank, but she and husband still could not afford the higher monthly payments.

They put their dream home on the market, but as many of her neighbors had also lost their residences to foreclosure, housing prices had dropped. Their home would have sold for less than their outstanding loan. After several months on the market with no offers, she and her husband moved to a rental home.

“I finally, just, you know, had to make my peace with the fact that we were going to lose our house, so that’s what we did and we just had to walk away.”

She may still owe money on the property, and she knows that her credit will be damaged. She only hopes she’ll be able to own a home again, but with one noticeable difference.

“I would not get an adjustable-rate loan,” she promised. “I would get a conventional loan, a fixed loan.”

For more on this story, please tune in to World News Tonight on Tuesday at 6:30 p.m. ET.

Biweekly mortgage may be a rip-off
by Scott Bilker

Biweekly mortgages have been touted by many companies as being an excellent way to save money and pay off your mortgage earlier. Some companies even claim that “it won’t cost you any more than you’re paying now.” What a crock! What do you think a true biweekly mortgage saves you? I’m talking about the savings from paying more frequently. Well, it doesn’t save that much at all. Hold on to your calculators. We’re going to use our brains and look at this problem very carefully. Here is something these biweekly mortgage salespeople don’t want you to do.

A $100,000 mortgage at 8% for 30 years has a monthly payment of $733.76. That’s 360 payments of $733.76 or a total of $264,155 at the end of 30 years. A true biweekly mortgage with 780 payments (26 payments per year) has a payment of $338.52, which totals $264,041 after 30 years of payments. Check out how much you saved by paying biweekly-that’s right, only 114 bucks ($264,155-$264,041)!

So, if paying more frequently isn’t what creates the savings, how can these companies claim to save you big money? They use the “biweekly” word to imply that increased frequency of payment can save money, when the real way they show the savings is by making you increase your payments.

They do a little math trick to force you to pay more, and that trick is to divide your mortgage in half and make that result the biweekly payment. The problem here is that 26 half-payments equal 13 whole-payments or an extra month’s payment each year. Obviously, if you pay more money, you reduce your mortgage faster.

Let’s go back to my original example. Notice that half the monthly payment of $733.76 is $366.88. If you pay $366.88 every two weeks, it only takes around 23 years to repay the $100,000 and costs a total of $217,853. So it seems like you save money by paying more frequently, but in reality it’s the extra money that reduces the mortgage faster.

This is a forced-discipline mortgage repayment plan. Not only requiring you to increase your payment, but how frequently you make those payments. Under the biweekly mortgage plan, you make 26 payments per year instead of 12. Now you’re writing 14 more checks each year. Isn’t that fun, yeah, just what you always wanted, 14 more bills to pay each year! And to gain what? Nothing you can’t do yourself.

But the absurdity doesn’t end here. Most biweekly mortgage companies actually want to charge you for this entire setup! That’s right, most companies charge an up-front fee and a monthly service fee.

The monthly service fee is so they can debit your checking account every two weeks and you don’t have to write the checks. That sounds to me to be an advantage for them! They get your money guaranteed since they can take it from your account at will. I think you should charge them a fee for that privilege!

Recently, a company attempted to sell my uncle on refinancing his current mortgage into one of these biweekly farces. Get this, their interest rate was higher than his current mortgage! But, the saleswomen argued, “interest rates don’t matter…look at how much you save.”

“Interest rates don’t matter!” How can she get away with that direct lie?

Let’s look at the numbers. Refer again to my first example of $100,000 for 30 years at 8% with a monthly payment of $733.76 that costs a total of $264,155 to repay. She said something like, “even though the biweekly payment is $366.88 (half the monthly payment), you can afford to add a little more…how about another $50? That raises your biweekly payment to $416.88.”

Her company’s rate is 9% and with payments of $416.88 ($366.88+$50) the total cost to repay the $100,000 is $214,026. The savings look like $50,128 (the difference between $264,155 and $214,026). Then there’s the $500 up-front fee and the $3 per-payment fee that they don’t include in the total cost of the loan.

So how much would this truly cost my uncle if he signed up for this rip-off plan? When you include all the fees of the biweekly plan, it comes to $216,068. He always has the option to pay $903.24 monthly toward his current mortgage. That $903.24 monthly payment is the equivalent of paying $416.88 biweekly. At $903.24 he can pay his current mortgage off for a total cost of $182,093. And that’s with no special plan, fees, extra payments or, in other words, no smoke and mirrors.

Look at that figure ($182,093). They tried to sucker him into a complex financial scheme that would cost $216,068! That rip-off plan would have him paying nearly an extra $34,000 compared to doing it on his own!

There are also considerations, such as other debts. If you have credit-card debts with interest rates greater than your mortgage rate, it makes sense to pay back the credit cards first. Similarly, if you have investments earning more than the interest rate of your mortgage, it’s best to continue investing. Also, because of inflation, your future payments toward your mortgage are less when compared to current dollars. For example, my parents’ mortgage was $198 when they purchased their home in 1969. This amount was a lot for that time but doesn’t seem like much now. The good news is that your $800 mortgage payment will seem like peanuts in 30 years.

Let’s look at the pros and cons of the biweekly mortgage through third-party companies. Cons: (1) probably costs far more than doing it yourself, (2) more CON-fusion, (3) forces you to pay earlier, (4) less flexibility in mortgage payments. Pros: (1) Gee, I can’t think of any…I guess if you want to be forced to pay off your mortgage early, and enjoy giving someone a fee to force you to, then it’s good.

My opinion is that if you want to pay your mortgage off early and save money on interest, then add some extra money to your monthly payment. This way, if for some reason you have trouble making the new payment, you always have the option to make the old lower payment, plus you retain more control over your money.

Or if you really want to be forced to pay your mortgage off early, then ask you current bank if they can set up a direct payment plan that includes your extra principal payment. As long as they can do this for free, then give it a try.

–End–

Posted on Wed, Mar. 22, 2006
Mortgage company agrees to change lending practices
By Rick Jurgens
CONTRA COSTA TIMES

Ameriquest Mortgage Co., the nation’s largest provider of high-interest rate loans to home buyers, has agreed to a judgment that will require it to clearly disclose loan terms and fees, not tamper with appraisals and set aside $26.6 million to pay restitution to California customers.

The judgment, entered Tuesday in Alameda County, spells out terms of a previously announced $325 million deal between Ameriquest and prosecutors in 49 states that in addition to the $26.6 million for California includes $175 million in nationwide restitution payments. Both sets of payments could raise restitution to customers throughout California to as high as $50 million, prosecutors said.

Administrators of the settlement will contact consumers who are eligible for restitution, according to a release from the Alameda County District Attorney’s Office.

Prosecutors accused Ameriquest of using “bait and switch” and other misleading sales tactics, hiding loans’ financial terms and prepayment penalties, arranging inflated property appraisals and encouraging prospective borrowers to fabricate income statements.

Ameriquest, based in Orange, denied any wrongdoing. “We’re pleased with our progress in carrying out the agreement,” said Chris Orlando, a company spokesman.

The deal, in the form of an injunction requiring Ameriquest to abide by its terms, provides for the imposition of civil penalties if violations occur, said Larry Blazer, a senior deputy assistant district attorney in Alameda County.

The injunction, which applies to Ameriquest’s retail offices, requires the company to provide customers’ with a one-page disclosure stating clearly whether it is fixed or variable rate. The disclosure, which must be handed over three days before the loan closes, must also reveal a loan’s size, fees, points, monthly payments, interest rate and maximum prepayment penalties, and it must be available in Spanish or any other languages in which Ameriquest advertises.

The injunction also requires that Ameriquest tie loan terms to credit risk, limit its role in the appraisal process and protect whistle blowers. It forbids payment of sales incentives for getting consumers to agree to prepayment penalties and bars the company from soliciting refinancing transactions during the first 24 months of a variable interest mortgage.

The injunction does not apply to transactions underwritten by the company’s wholesale unit and executed by independent mortgage brokers.

Ameriquest is a high-profile company that sponsored the fan voting for Major League Baseball’s 2005 All Star Game and the current tour of the Rolling Stones. The company’s owner, Roland Arnall, is the new U.S. ambassador to the Netherlands. His official biography posted on the State Department Web site says that Ameriquest “helped modernize the nonprime lending industry.”

But that modernized industry remains a confusing and sometimes perilous terrain to be navigated by home buyers and mortgage borrowers. “What people know at the end of a loan transaction is often not the full picture of what they are buying,” Blazer said.

Blazer also said that he was “startled” when he began to learn about the industry on a task force set up four years ago in response to consumer complaints in Alameda County. “It’s a business that is not tightly regulated,” he said. “There is money to be made there.”

Some consumer activists have criticized the settlements between state prosecutors and Ameriquest for failing to provide sufficient restitution or prohibit so-called “no document” loans in which borrowers are not required to provide proof of income.

Cost of mortgage protection leading to soaring repossessions
22/03/2006
The high perceived cost of mortgage payment protection insurance (MPPI) puts too many homeowners off from taking out this crucial form of security against debt.

Recent research by the charity Advice UK found that, while mortgages constitute 83 per cent of consumer borrowing, only 17 per cent of that mortgage holders also take out MPPI.

Separate data published by the Council of Mortgage Lenders (CML) has found that home repossessions rose by 70 per cent in 2005 as against the previous year.

Furthermore, historically low interest rates are leading many families to extend their mortgages in order to pay off other debts or to spend on cars, holidays and other luxuries.

MPPI specialist Paymentcare has warned this week that public perceptions of its sector need to be addressed.

Spokesperson Shane Craig stated: “The situation gives cause for concern as so few homeowners have taken out any protection for their mortgages to cover them if they have an accident or are sick or lose their jobs.”

Advice UK’s report suggests that the MPPI offered by the big banks can be up to 70 per cent more expensive than that available from specialised brokers.

“At present, all MPPI offerings look like they are being tarred with the same brush, as homeowners appear to take the view that cover is only available at rip off prices set by the major lenders”, Mr Craig told Mortgage Introducer.

© Adfero Ltd

Mortgage lending tops February record
22nd March 2006

With Gordon Brown announcing today that the UK economy is in good shape and that it has again grown faster than its European rivals, the Council of Mortgage Lenders (CML) brought more cheer with news that mortgage lending reached record levels in February.

Homebuyers borrowed a total of £21.8 billion in the month, which represents a huge increase on the £17.9 billion last year.

It is a statistic that again emphasises the strength of the UK property market, with confidence back with a vengeance and buyers eager to make a move as prices continue to rise steadily.

Typically, February is the weakest month in the year for house purchases, with a notable slump between the more active autumn and spring seasons. Many also await the Budget, while the post-Christmas blues inevitably lead to a slowdown in consumer spending.

With this in mind, Michael Coogan, director general of the CML, has said that the results are impressive and reflect the remarkable transformation of the market in such a short period of time.

“Confidence in the housing market is strong and demand has returned to the levels we witnessed two years ago,” he said.

“Areas which saw sluggish activity over the past couple of years such as London and the south-east are now seeing a clear strengthening in house prices,” he added.

Looking ahead, Mr Coogan has said that 2006 will remain strong, with the levels of confidence unlikely to dip in the foreseeable future. He added that the economy is in good shape, while stable interest rates are currently sustaining a steady rise in property values.

The National Association of Estate Agents (NAEA), meanwhile, has referred to “an energetic market in the run up to the Budget” with sales figures climbing considerably in February, helped by interest rates and employment levels.

There was a 30 per cent increase in sales per agent from ten to 13 in the month, reflecting a ten per cent rise on the same month in 2005. The NAEA reports that consumers were “clearly feeling optimistic” in February, while there was also good news for buy-to-let landlords.

The average time to let a property fell from 14 to 12.7 days, as demand for rented accommodation continued to rise.

The only concern for the NAEA was the fact that first-time buyers had a smaller share of the market when compared to the previous month, prompting NAEA President Christopher Hall to call for changes in today’s Budget.

It would seem that Mr Hall got his wish, with the chancellor announcing plans to provide £970 million for shared equity schemes in a plan designed to get 35,000 first-time buyers onto the property ladder.

In addition to this, the initial stamp duty threshold will be raised from £120,000 to £125,000 to give as many people as possible the chance to avoid the tax when making their first purchase. The legislation will come into effect tomorrow.

While there are still reservations in some quarters about the potential impact of home information packs (Hips), the property market is undoubtedly in good shape, adding weight to the argument that property investment is again rivalling stocks and shares.

US mortgage applications decreased last week - MBA
Wed Mar 22, 2006 7:00 AM ET
NEW YORK, March 22 (Reuters) - U.S. mortgage applications fell last week to their lowest level this year despite a marked drop in interest rates, an industry trade group said on Wednesday.

The Mortgage Bankers Association said its seasonally adjusted index of mortgage application activity for the week ended March 17 decreased 1.6 percent to 565.0 from the previous week’s 574.4, its lowest level so far this year.

Borrowing costs on 30-year fixed-rate mortgages, excluding fees, averaged 6.31 percent, down 0.11 percentage point from the previous week’s 6.42 percent level, a near four-year peak.

The group’s seasonally adjusted index of refinancing applications decreased 0.6 percent to 1,574.5 compared to 1,583.6 the previous week.

The MBA’s seasonally adjusted purchase mortgage index dropped 2.3 percent to 393.6 from the previous week’s 403.0. The index was only a few points above its two-year low of 391.7 reached during the week ended Feb. 10. The index was also below its year-ago level of 446.4.

The purchase index is considered a timely gauge on U.S. home sales.

National Average 

30 Yr Fix    6.24%    0.02%
15 Yr Fix    5.89%    0.00%
1 Yr ARM    5.34%    0.02%
30 Yr Tres  4.65%    0.02%
Fed Prime   7.50%    0.25%

MORTGAGE NEWS DAILY HEADLINES
NAR Issues Existing Home Sales Report For January
Fri, 3 Mar 2006 16:53:44 EST
NAR existing home sales figures show slipping sales, but prices continue to rise.

Mortgage Rates Retreat A Bit But So Does Mortgage Activity
Wed, 1 Mar 2006 18:08:55 EST
Weekly Mortgage Survey for Week Ending February 23, 2006

Listen Closely, The Housing Bubble Might Not Be Leaking
Wed, 1 Mar 2006 11:11:50 EST
Recent reports of the looming housing bubble could be exaggerated.

Redfin Lacks Zillow Hype, But May Ultimately Have More Impact
Fri, 24 Feb 2006 15:44:32 EST
Redfin in Seattle, Washington has a new real estate service that will probably thrill buyers, initially at least, and put traditional agents into a not-so-slow burn.

Zillow May Not Be Ready For Prime Time
Fri, 24 Feb 2006 14:48:07 EST
Zillow is a fun site, but it may have come on line much to soon for its own good.

Mortgage Rates Mixed But ARMs Not Much Of A Bargain
Wed, 22 Feb 2006 15:53:17 EST
Weekly Mortgage Survey - Week Ending February 16, 2006

Put To One Test The Zillow Website Performs Well
Tue, 21 Feb 2006 17:43:31 EST
Where Zillow is up to speed, its technology holds up well, at least in our one-town, one-house test.

Zillow and Other Z Words Are the Rage of the Internet
Wed, 15 Feb 2006 15:11:53 EST
Zillow may soon be a great website but, as even they admit, they are not there yet.

Mortgage Rates Flat But Activity Down From 2005 Levels
Wed, 15 Feb 2006 14:38:04 EST
Weekly Mortgage Survey - Week Ending February 9, 2006

Environmental And Asthetical Alternatives Exist To Minimize Hardscape
Mon, 13 Feb 2006 11:56:58 EST
Reducing the impervious materials used to accommodate vehicles and recycling the water that washes off of our roofs can pay big dividends to the environment and maybe even the household budget.

Cash Out Refinancing Continued At Near Record Rates At Year End
Fri, 10 Feb 2006 12:12:35 EST
Americans continue to draw down on their housing nest-egg. It is keeping the economy perking, but can it last much longer?

Is Evidence Mounting Against A Housing Bubble Bust
Thu, 9 Feb 2006 13:48:13 EST
If the air is leaving the housing bubble, The National Association of Realtors still sees it leaving home sales at sustainable levels.

Mortgage Rates Hit Recent Highs But Activity Still Strong
Wed, 8 Feb 2006 17:37:25 EST
Weekly Mortgage Survey - Week Ending February 2, 2006

Fannie Mae Has A Little Good News For A Change
Mon, 6 Feb 2006 11:14:56 EST
Finally Fannie Mae has some good news to announce - a gift from NYSE, a portfolio increase, and Greenspan off of its back.

Building Green Starts With The Land
Thu, 2 Feb 2006 11:42:47 EST
Prior planning can prevent a lot of damage done to the land by construction. But first, somebody has to care.

Mortgage Rates Resume Upward Climb After Long Holiday Vacation
Wed, 1 Feb 2006 17:49:39 EST
Weekly Mortgage Survey - Week Ending January 27, 2006

NAR Releases Monthly and Annual 2005 Existing Home Sale Numbers
Wed, 1 Feb 2006 11:49:08 EST
Home sales are obviously beginning to slow, but records were still set during 2005 in both volume and value .

Mortgage Rates Drift, But Mostly Downward
Thu, 26 Jan 2006 09:17:41 EST
Weekly Mortgage Survey - Week Ending January 19, 2006

Foreclosure Activity Up and Mortgage Defaults To Rise
Wed, 25 Jan 2006 11:53:00 EST
Foreclosure activity is up over the last year along with an increasing number of mortgage defaults from the Gulf Region.

New York Housing Bubble and NAR Reports
Wed, 25 Jan 2006 11:26:13 EST
New York City Mayor Michael Bloomberg shares some thoughts about the NYC Real Estate Market.

Building Green From The Start - The Land and Lot
Tue, 24 Jan 2006 11:22:33 EST
Builders are using land clearing techniques and impermeable materials which are a direct assault on the environment, one that most people don’t even recognize.

Housing Bubble or Slow Deceleration of Housing Market?
Wed, 18 Jan 2006 17:18:18 EST
Freddie Mac is not saying No Way to the housing bubble bursting, but seems much to like about housing in 2006.

Mortgage Rates Drop And Mortgage Activity Remains Strong
Wed, 18 Jan 2006 15:31:40 EST
Weekly Mortgage Survey - Week Ending January 13, 2006

Building Green, Living Green
Tue, 17 Jan 2006 10:34:16 EST
Whether it is out of concern for the environment or the pocketbook, building in harmony with nature is again in fashion.

Freddie Macs ARM Survey Notes Increased Lender Discounts
Thu, 12 Jan 2006 11:07:44 EST
While the flattening of the yield curve has not noticeably hurt the popularity of ARMS, it is largely lender discounts that have kept the products in the game.

Mortgage Rates Recover From Holiday Doldrums
Wed, 11 Jan 2006 15:17:11 EST
Weekly Mortgage Survey - Week Ending January 6, 2006

Home Warranties Now Available To All
Mon, 9 Jan 2006 13:26:08 EST
Home warranties are not new, but they are increasingly being marketed to home owners rather than buyers and sellers.

Real Estate Hot Buttons Can Impede Your Home Search
Fri, 6 Jan 2006 15:17:22 EST
We all want what we cannot have when it comes to a home search, but recognizing what we want and why we want it can make compromise easier to accept when buying or renting a home.

In a See Saw Year Mortgage Rates Finish 2005 Higher
Fri, 6 Jan 2006 15:00:20 EST
Weekly Mortgage Survey - Week Ending December 29, 2005

NAR Parcels Out Some Interesting Stats of Real Estate and Agents
Mon, 2 Jan 2006 16:45:13 EST
NAR report on competitiveness contains a lot of information about agent incomes, mobility, and small versus large firms.

Existing Home Sales Drop But Prices Continue Climb
Fri, 30 Dec 2005 15:26:16 EST
Existing home sales continue to decline nationally and by region, but median home prices are still on the uptick.

Mortgage Rates and Activity? Holidays Hold Center Stage
Wed, 28 Dec 2005 16:00:31 EST
Weekly Mortgage Survey - Week Ending December 22, 2005

Mortgage Rates, Fees and Points Ease Marginally From Previous Week
Wed, 21 Dec 2005 16:13:30 EST
Weekly Mortgage Survey - Week Ending December 15, 2005

NAR Report Sees Banks as Non-Competitive
Wed, 21 Dec 2005 11:02:30 EST
Per NAR, real estate is a nearly perfect competitive market. Banking, uh,.not so much.

NAR Strikes Back At Anti-Competitive Charges
Fri, 16 Dec 2005 15:56:11 EST
NAR counters claims of non-competitiveness with major review of real estate and banking industry structures.

Mortgage Rates Continue To Exhibit Split Personality
Wed, 14 Dec 2005 15:32:46 EST
Weekly Mortgage Survey - Week Ending December 8, 2005

Major Economic Forecasts Paint Varied Future For Housing
Mon, 12 Dec 2005 12:57:23 EST
Economists generally agree that housing is slowing but differ greatly on the pace and the effect.

Surveys Indicating Mortgage Rates Turning Around Again
Thu, 8 Dec 2005 10:43:10 EST
Weekly Mortgage Survey - Week Ending November 30, 2005

A Bad Inspection Should Not Be The End Of The World (Cont)
Wed, 7 Dec 2005 11:19:55 EST
Do not give up on your dream house just because the inspection report is less than dreamy. Money can fix most problems and your seller may be willing to pay his share.

Conventional Loan Limits Increased For Freddie and Fannie
Fri, 6 Jan 2006 16:42:54 EST
Freddie Mac and Fannie Mae loan limits will increase to meet rising house prices.

Mortgage Rates Return To October Levels
Wed, 30 Nov 2005 12:04:00 EST
Weekly Mortgage Survey - Week Ending November 23, 2005

Housing Bubble - Maybe, Maybe Not.
Wed, 30 Nov 2005 11:48:21 EST
NAR and HUD-Census Bureau release October sales figures. Existing home sales slow a bit but new homes continue to sell at a record pace.

Home Inspection Reports Should Not Be All Bad News
Tue, 29 Nov 2005 11:59:27 EST
A good housing inspection should give a buyer a solid assessment of the new house and provide lots of information to keep it running well.

Mortgage Rates Drop According To Most Recent Surveys
Wed, 23 Nov 2005 15:54:21 EST
Weekly Mortgage Survey - Week Ending November 17, 2005

What Constitutes A Good Home Inspection?
Tue, 29 Nov 2005 11:38:57 EST
What should you expect from a home inspection? The American Society of Home Inspectors has Standards of Practice, but a good inspector will go an extra mile or more.

No Matter What, Budget For A Home Inspection
Thu, 17 Nov 2005 12:21:16 EST
Home inspections are a nearly universal part of a home purchase these days. Why you should never forego one and what you should expect to pay, how you will benefit, and how states are moving to regulate the process.

Mortgage Rates Increase Moderately After Last Weeks Big Jump
Wed, 16 Nov 2005 15:20:49 EST
Weekly Mortgage Survey - Week Ending November 10, 2005

Fannie Mae Misses Report Again and Finds More Accounting Problems
Tue, 15 Nov 2005 11:02:29 EST
Any bets on when Fannie Mae will finally figure out what it earned or didn’t during the first years of the new century? It sure does not seem to be getting any closer to restating its earlier reports.

Freddie Mac Sees Continued Bright Future For Housing Market
Fri, 11 Nov 2005 11:59:32 EST
Beyond short term impacts of the hurricanes and in spite of rising interest rates Freddie Mac still paints a picture of a solid housing market.

Mortgage Rates Take Biggest Jump of Year
Wed, 9 Nov 2005 13:32:38 EST
Weekly Mortgage Survey - Week Ending November 4, 2005

Home Building and Remodeling For Accessability - Part II
Tue, 8 Nov 2005 16:29:30 EST
Making a home work for the elderly or disabled can provide comfort and safety for the whole family.

President Bush Tax Panel Recommendations Go To Executive Branch
Mon, 7 Nov 2005 13:31:51 EST
The Presidential tax panel issued its recommendations this week. There were enough small changes to warrant a second and more comprehensive look.

Weekly Mortgage Rates Hit New Yearly Highs Again
Wed, 2 Nov 2005 16:22:05 EST
Weekly Mortgage Survey - Week Ending October 27, 2005

Building Or Remodeling Your Home In Light Of The Inevitable or Accidental
Tue, 1 Nov 2005 17:16:01 EST
A disability, even a very temporary one, can raise havoc with the enjoyment of your home. Take any opportunity when building or remodeling to prepare for accessibility.

Lopsided House Vote Seeks To Regulate Freddie Mac and Fannie Mae
Fri, 28 Oct 2005 11:41:39 EST
The House of Representatives has approved new oversight for Freddie Mac and Fannie Mae. Senate approval appears a long way off.

The 30 Fixed Mortgage Rates Now Firmly Over 6 Percent
Tue, 8 Nov 2005 15:40:15 EST
Weekly Mortgage Survey - Week Ending October 20, 2005

NAR Sees Soft Landing as Housing Bubble Transitions To Expansion
Wed, 26 Oct 2005 14:43:30 EST
NAR report sees an ultimate soft landing as bubble begins to soften and fallout from Katrina benefits portions of the sales market.

Home Mortgage Deduction Under Attack By Presidential Panel
Mon, 7 Nov 2005 15:02:02 EST
Homeowners may lose a cherished tax deduction if a presidential panel gets its way. But history says it is unlikely to happen.

Modular Homes and Prefab Housing Can Save Time and Money
Fri, 21 Oct 2005 12:55:34 EST
Modular and panelized construction using a variety of methods and materials offer time and cost saving alternatives for homeowners. Even IKEA is getting into the act.

Are Real Estate Commissions at the Root of NAR Problems?
Fri, 21 Oct 2005 11:59:10 EST
Are commissions the reason for the recent attacks on the National Association of Realtors and on agents. Hmmmm - there does seem to be a pattern.

Mortgage Rates Top 6 Percent
Tue, 8 Nov 2005 15:38:18 EST
Weekly Mortgage Survey - Week Ending October 13, 2005

Rita Joins Katrina As Topic of Freddie Mac Monthly Reports
Mon, 17 Oct 2005 14:17:54 EST
Although acknowledging hurricanes impact, Freddie Mac still sees a rosy housing picture.

Freddie Mac Anticipates Huge Hurricane Related Losses
Wed, 12 Oct 2005 15:31:24 EST
Freddie Mac has tallied up its losses to Rita and Katrina and they will be substantial.

Fixed Mortgage Rates Nudge 6 Percent For First Time Since Spring
Wed, 12 Oct 2005 14:40:39 EST
Weekly Mortgage Survey - Week Ending October 6, 2005

Congress Is Also On The Case - NARs Troubles, Continued
Wed, 12 Oct 2005 12:31:48 EST
A Government Accountability Office Report suggests reputation and service may be more relevant to creating competition in the real estate than commissions.

Manufactured Housing And Homes-In-A-Box are Viable Routes To Home Ownership
Mon, 10 Oct 2005 13:05:07 EST
While traditional one-stud-at-a-time construction remains the norm, a potential build-it-myselfer would do well to check out options to make those dreams come true.

Realtors Under Fire From DOJ, GAO, And That is Just the Beginning
Mon, 10 Oct 2005 13:20:04 EST
Seems like a lot of people are targeting the National Association of Realtors. The Department of Justice heads the list.

ARMs Narrow Yield Curve in Latest Mortgage Rates Survey
Wed, 12 Oct 2005 14:38:44 EST
Weekly Mortgage Survey - Week Ending September 28, 2005

So You Want To Build A House
Tue, 4 Oct 2005 17:26:44 EST
Building a home is an adventure but, with enough information and some innovative new housing options, perhaps one with a happy ending.

N
Negative Amortization
Amortization means that monthly payments are large enough to pay the interest and reduce the principal on your mortgage. Negative amortization occurs when the monthly payments do not cover all of the interest cost. The interest cost that isn’t covered is added to the unpaid principal balance. This means that even after making many payments, you could owe more than you did at the beginning of the loan. Negative amortization can occur when an ARM has a payment cap that results in monthly payments not high enough to cover the interest due.

Non-conforming loan
Loans that do not comply with Fannie Mae or Freddie Mac guidelines. These guidelines establish the maximum loan amount, down payment, borrower credit and income requirements, and suitable properties. Loans that does conform to these guidelines may be sold to Fannie Mae or Freddie Mac.
O
Office of Thrift Supervision (OTS)
The regulatory and supervisory agency for federally chartered savings institutions.

Open End Mortgage
see Mortgage (Open-End)

Owner Financing
A property purchase transaction in which the property seller provides all or part of the financing.
P

Package Mortgage
A mortgage covering both real and personal property.

Parcel
A separately assessed for tax purposes lot or piece of real property.

PITI
Principal, Interest, Taxes and Insurance. These components are usually included in the monthly mortgage payment.

Planned Unit Development (PUD)
A project or subdivision that includes common property that is owned and maintained by a homeowners’ association for the benefit and use of the individual PUD unit owners.

Plat
A map or chart of a lot, subdivision or community drawn by a surveyor showing boundary lines, buildings, improvements on the land, and easements.

Points
Sometimes called “discount points.” A point is one percent of the amount of the mortgage loan. For example, if a loan is for $25,000, one point is $250. Points are charged by a lender to raise the yield on his loan at a time when money is tight, interest rates are high, and there is a legal limit to the interest rate that can be charged on a mortgage. Buyers are prohibited from paying points on HUD or Veterans’ Administration guaranteed loans (sellers can pay, however). On a conventional mortgage, points may be paid by either buyer or seller or split between them.

Power of Attorney
A legal document that authorizes another person to act on one’s behalf. A power of attorney can grant complete authority or can be limited to certain acts and/or certain periods of time.

Prepayment
Payment of mortgage loan, or part of it, before due date. Mortgage agreements often restrict the right of prepayment either by limiting the amount that can be prepaid in any one year or charging a penalty for prepayment. Lenders who impose prepayment penalties will charge borrowers a fee if they wish to repay part or all of their loan in advance of the regular schedule. The Federal Housing Administration does not permit such restrictions in FHA insured mortgages.

Principal
The basic element of the loan as distinguished from interest and mortgage insurance premium. In other words, principal is the amount upon which interest is paid.

Private Mortgage Insurance (PMI)
An insurance policy the borrower buys to protect the lender from non-payment of the loan.

Prorations
The allocation of expenses, such as taxes between buyer and seller at closing based on the number of days the property is owned during the month of closing.
Processing, Underwriting and Document Fees
Charges for the lender’s services associated with making the loan.
Purchase Agreement
See Agreement of Sale
Q
Quitclaim Deed
A deed which transfers whatever interest the maker of the deed may have in the particular parcel of land. A quitclaim deed is often given to clear the title when the grantor’s interest in a property is questionable. By accepting such a deed the buyer assumes all the risks. Such a deed makes no warranties as to the title, but simply transfers to the buyer whatever interest the grantor has. See Deed

Qualifying Ratios
Lenders use certain guidelines to determine a potential borrower’s credit-worthiness. The two guidelines used are the housing and debt ratios. They are expressed as two numbers like 28/36 where 28 would be the housing ratio and 36 would be the debt ratio. It means that:

1. Your housing expenses should not exceed 28 percent of your gross monthly income and
2. Housing expenses plus long- term debt should not exceed 36 percent of your gross monthly income.

The housing expenses include monthly mortgage principal, interest payments, property taxes and homeowner’s insurance. There may be other expenses, such as condominium fees, homeowners fees, special assessments, etc., that are included. Long-term debt is defined as monthly expenses extending more than 10 months into the future. The qualifying ratios may vary from lender to lender.

Please note that qualifying ratios are only a rough guidelines and underwriters consider many variables in their analysis. Many times, borrowers fall outside the guidelines, but have strong compensating factors that reflect low credit risk. Some compensating factors are history of savings, long-term job stability, a substantial down payment or excellent credit history will influence the decision to approve or deny a particular loan.
R
Rate Reduction Option
A mortgage loan with rate reduction option can be adjusted, under the right conditions, to a lower interest rate with a payment of small fee. This allows the borrowers to adjust the interest rate on the loan without having to go through a refinancing, which could cost up to 5 percent or 6 percent of the loan amount. The interest rate or points may be somewhat higher for a loan with rate reduction option.

Real Estate Broker
A middle man or agent who buys and sells real estate for a company, firm, or individual on a commission basis. The broker does not have title to the property, but generally represents the owner.

Real Estate Settlement Procedures Act (RESPA)
A consumer protection statute designed to help consumers be better shoppers in the home buying process. It requires that borrowers receive disclosures at various times. RESPA also prohibits certain practices that increase the cost of settlement services. More about RESPA

Recorder
The public official who keeps records of transactions that affect real property in the area. Sometimes known as a “Registrar of Deeds” or “County Clerk.”

Refinancing
The process of the same mortgagor paying off one loan with the proceeds from another loan.

Rescission
The cancellation of a contract. When you use your home as collateral for a loan, you generally have the right to cancel the credit transaction within three business days. This is called your “right of rescission,” and it is guaranteed by the Federal Truth in Lending Act. See FTC publication Getting a Loan: Your Home as Security

Restrictive Covenants
Private restrictions limiting the use of real property. Restrictive covenants are created by deed and may “run with the land,” binding all subsequent purchasers of the land, or may be “personal” and binding only between the original seller and buyer. The determination whether a covenant runs with the land or is personal is governed by the language of the covenant, the intent of the parties, and the law in the State where the land is situated. Restrictive covenants that run with the land are encumbrances and may affect the value and marketability of title. Restrictive covenants may limit the density of buildings per acre, regulate size, style or price range of buildings to be erected, or prevent particular businesses from operating or minority groups from owning or occupying homes in a given area. (This latter discriminatory covenant is unconstitutional and has been declared unenforceable by the U.S. Supreme Court.)

Reverse Mortgage
A special type of home loan that lets elderly homeowners convert the equity in their home into cash.

Right of Survivorship
In joint tenancy, the right of survivors to acquire the interest of a deceased joint tenant.
S
Sales Agreement
See Agreement of Sale

Second Home (or Vacation Home)
This home is not rented and is occupied occasionally by the owners.

Second mortgage
A mortgage in addition to the first mortgage. Home equity loans, credit lines, home improvement loans are second mortgage loans. Second mortgage is subordinate to the first one. Second mortgage loans are non-conforming loans, so, they usually carry a higher interest rate, and they often are for a shorter time.

Secondary (subordinate) financing
Borrowing additional money toward the down payment. If it is acceptable, usually subject to a maximum combined LTV. Secondary financing is used as an alternative to obtaining Private Mortgage Insurance

Section 1031
Under section 1031 of the IRS, owners or real estate held for investment or for use in a trade or business can exchange their property tax-free for “like-kind” real estate.
Sec. 1031. Exchange of property held for productive use or investment. Statute.

Servicing
Servicing means the collection of payments, handling your escrow accounts and management of operational procedures, related to mortgages, that a lender performs.

Set Back Ordinance
Regulates the distance from the lot line to the point where improvements may be constructed.

Settlement (Closing)

Shared Appreciation Mortgage
A residential loan in which a borrower receives a below-market interest rate in return for which the lender receives a specified share of the future appreciation in the value of the property.

Special Assessments
A special tax imposed on property, individual lots or all property in the immediate area, for road construction, sidewalks, sewers, street lights, etc.

Special Lien
A lien that binds a specified piece of property, unlike a general lien, which is levied against all one’s assets. It creates a right to retain something of value belonging to another person as compensation for labor, material, or money expended in that person’s behalf. In some localities it is called “particular” lien or “specific” lien. (See lien.)

Special Warranty Deed
A deed in which the grantor conveys title to the grantee and agrees to protect the grantee against title defects or claims asserted by the grantor and those persons whose right to assert a claim against the title arose during the period the grantor held title to the property. In a special warranty deed the grantor guarantees to the grantee that he has done nothing during the time he held title to the property which has, or which might in the future, impair the grantee’s title.

State Stamps
See Documentary Stamps

Survey
A map or plat made by a licensed surveyor showing the results of measuring the land with its elevations, improvements, boundaries, and its relationship to surrounding tracts of land. A survey is often required by the lender to assure him that a building is actually sited on the land according to its legal description.
T
Tax
As applied to real estate, an enforced charge imposed on persons, property or income, to be used to support the State. The governing body in turn utilizes the funds in the best interest of the general public.

Taxable Assessed Value
The assessed value of a parcel against which the tax rate is applied to compute the tax due. In case of a partial exemption, the exempt amount is subtracted from the assessed value in order to determine the taxable assessed value.

Teaser Rate
A low initial interest rate on a mortgage.

Title
As generally used, the rights of ownership and possession of particular property. In real estate usage, title may refer to the instruments or documents by which a right of ownership is established (title documents), or it may refer to the ownership interest one has in the real estate.

Title Insurance
Protects lenders or homeowners against loss of their interest in property due to legal defects in title. Title insurance may be issued to a “mortgagee’s title policy.” Insurance benefits will be paid only to the “named insured” in the title policy, so it is important that an owner purchase an “owner’s title policy”, if he desires the protection of title insurance.

Title Insurance Binder
Written commitment of a title insurance company to insure title to the property under the conditions stated in the binder.

Title Search or Examination
A check of the title records, generally at the local courthouse, to make sure the buyer is purchasing a house from the legal owner and there are no liens, overdue special assessments, or other claims or outstanding restrictive covenants filed in the record, which would adversely affect the marketability or value of title.

Trustee
A party who is given legal responsibility to hold property in the best interest of or “for the benefit of” another. The trustee is one placed in a position of responsibility for another, a responsibility enforceable in a court of law. See Deed of Trust

Truth-In-Lending Act ( TIL, also called Regulation Z)
Under this act a lender is required to provide you with a disclosure estimating the costs of the loan you have applied for, including your total finance charge and the Annual Percentage Rate (APR) within three business days of your application for a loan.

Two-Step Mortgage
With this type of loan homebuyers get a fixed rate loan at a slightly lower interest rate for a fixed period of time (most often for 5, 7, or 10 years) and then the interest rate is adjusted to fit market conditions at that time. After that adjustment, the mortgage maintains a fixed rate for the remaining years.
U
Underwriting
A process of deciding whether to make a loan based on your credit reputation, income, debt, appraised value of the house and other factors.
V

VA Loan
A mortgage for veterans and service persons guaranteed by the Department of Veterans Affairs (VA), requiring very low or no downpayments and with generous requirements for qualification.
W
Wraparound Mortgage
A loan arrangement whereby the existing loan is retained and a new loan is added to the property. Full payments on both mortgages are made to the wraparound mortgagee, who then forwards the payments on the first mortgage to the first mortgagee.
Z
Zoning
A local government authority’s specifications for the use of property in certain areas.

Zoning Ordinances
The acts of an authorized local government establishing building codes, and setting forth regulations for property land usage.

D
Deed
A formal written instrument by which title to real property is transferred from one owner to another. The deed should contain an accurate description of the property being conveyed, should be signed and witnessed according to the laws of the State where the property is located, and should be delivered to the purchaser at closing day. There are two parties to a deed: the grantor and the grantee. (See also Deed of Trust, General Warranty Deed, Quitclaim Deed, and Special Warranty Deed)

Deed of Trust
Like a mortgage, a security instrument whereby real property is given as security for a debt. However, in a deed of trust there are three parties to the instrument: the borrower, the trustee, and the lender, (or beneficiary). In such a transaction, the borrower transfers the legal title for the property to the trustee who holds the property in trust as security for the payment of the debt to the lender or beneficiary. If the borrower pays the debt as agreed, the deed of trust becomes void. If, however, he defaults in the payment of the debt, the trustee may sell the property at a public sale, under the terms of the deed of trust. In most jurisdictions where the deed of trust is in force, the borrower is subject to having his property sold without benefit of legal proceedings. A few States have begun in recent years to treat the deed of trust like a mortgage.

Default
Failure to make mortgage payments as agreed to in a commitment based on the terms and at the designated time set forth in the mortgage or deed of trust. It is the mortgagor’s responsibility to remember the due date and send the payment prior to the due date, not after. Generally, thirty days after the due date if payment is not received, the mortgage is in default. In the event of default, the mortgage may give the lender the right to accelerate payments, take possession and receive rents, and start foreclosure. Defaults may also come about by the failure to observe other conditions in the mortgage or deed of trust.

Deferred interest
When the monthly payments do not cover all of the interest cost, the unpaid interest is deferred by adding it to the loan balance.

Deficiency Judgment
Personal claim against the debtor when the sale of foreclosed property does not yield sufficient proceeds to pay off the mortgages.

Depreciation
Decline in value of a house due to wear and tear, adverse changes in the neighborhood, or any other reason.

Discount
In an ARM with an initial rate discount, the lender gives up a number of percentage points in interest to give you a lower rate and lower payments for part of the mortgage term (usually for one year or less). After the discount period, the ARM rate will probably go up depending on the index rate.
A State tax, in the forms of stamps, required on deeds and mortgages when real estate title passes from one owner to another. The amount of stamps required varies with each State.

Documentary Stamps
A State tax, in the forms of stamps, required on deeds and mortgages when real estate title passes from one owner to another. The amount of stamps required varies with each State.

Downpayment
The amount of money to be paid by the purchaser to the seller upon the signing of the agreement of sale. The agreement of sale will refer to the downpayment amount and will acknowledge receipt of the downpayment. Downpayment is the difference between the sales price and maximum mortgage amount. The downpayment may not be refundable if the purchaser fails to buy the property without good cause. If the purchaser wants the downpayment to be refundable, he should insert a clause in the agreement of sale specifying the conditions under which the deposit will be refunded, if the agreement does not already contain such clause. If the seller cannot deliver good title, the agreement of sale usually requires the seller to return the downpayment and to pay interest and expenses incurred by the purchaser.

Due-on-Sale Clause
A clause in the Deed of Trust or Mortgage that states that the entire loan is due upon the sale of the property.
E
Earnest Money
The deposit money given to the seller or his agent by the potential buyer upon the signing of the agreement of sale to show that he is serious about buying the house. If the sale goes through, the earnest money is applied against the downpayment. If the sale does not go through, the earnest money will be forfeited or lost unless the binder or offer to purchase expressly provides that it is refundable.

Easement Rights
A right-of-way granted to a person or company authorizing access to or over the owner’s land. An electric company obtaining a right-of-way across private property is a common example.

Encroachment
An obstruction, building, or part of a building that intrudes beyond a legal boundary onto neighboring private or public land, or a building extending beyond the building line.

Encumbrance
A legal right or interest in land that affects a good or clear title, and diminishes the land’s value. It can take numerous forms, such as zoning ordinances, easement rights, claims, mortgages, liens, charges, a pending legal action, unpaid taxes, or restrictive covenants. An encumbrance does not legally prevent transfer of the property to another. A title search is all that is usually done to reveal the existence of such encumbrances, and it is up to the buyer to determine whether he wants to purchase with the encumbrance, or what can be done to remove it.

Equal Credit Opportunity Act
Prohibits discrimination in any aspect of a credit transaction on the basis of race, religion, age, color, national origin, receipt of public assistance funds, sex, or marital status. Text.

Equity
The value of a homeowner’s unencumbered interest in real estate. Equity is computed by subtracting from the property’s fair market value the total of the unpaid mortgage balance and any outstanding liens or other debts against the property. A homeowner’s equity increases as he pays off his mortgage or as the property appreciates in value. When the mortgage and all other debts against the property are paid in full the homeowner has 100% equity in his property.

Escrow
Funds paid by one party to another (the escrow agent) to hold until the occurrence of a specified event, after which the funds are released to a designated individual. In FHA mortgage transactions an escrow account usually refers to the funds a mortgagor pays the lender at the time of the periodic mortgage payments. The money is held in a trust fund, provided by the lender for the buyer. Such funds should be adequate to cover yearly anticipated expenditures for mortgage insurance premiums, taxes, hazard insurance premiums, and special assessments. See also Escrow Account.
F

Fair Housing Act
Prohibits discrimination in housing sales or loans on the basis of race, religion, color, national origin, sex, familial status, or handicap. Your Rights under the Fair Housing Act.

Federal Home Loan Mortgage Corporation (FHLMC, Freddie Mac)
A stockholder-owned corporation chartered by Congress to create a continuous flow of funds to mortgage lenders in support of homeownership and rental housing. Freddie Mac purchases single-family and multifamily residential mortgages from lenders and packages them into securities that are sold to investors.

Federal Housing Administration (FHA)
A part of the U.S. Department of Housing and Urban Development (HUD). FHA assists first-time home buyers and others who might not be able to meet down payment requirements for conventional loans by providing mortgage insurance to private lenders. It also insures loans for home improvements and buying manufactured (mobile) homes. These programs operate through FHA approved lending institutions which submit applications to have the property appraised and have the buyer’s credit approved.

Federal National Mortgage Association (FNMA, Fannie Mae)
A stockholder-owned federally chartered corporation. Fannie Mae purchases residential home loans from mortgage lending institutions, packages the mortgages into securities and sells the securities to investors. The largest source of residential mortgage funds in the United States.

FHA Loan
A loan insured by the Federal Housing Administration open to all qualified home purchasers. Interest rates on FHA loans are generally market rates, while down payment requirements are lower than for conventional loans. FHA loans cannot exceed the statutory limit.

Firm Commitment
A lender’s agreement to make a loan to a specific borrower on a specific property.

First Mortgage
A mortgage that has priority as a lien over all other mortgages.

Fixed Installment
The monthly payment due on a mortgage loan. The fixed installment includes payment of both principal and interest.

Flood Insurance
Insurance that compensates for physical property damage resulting from flooding. It is required for properties located in federally designated flood areas.

Foreclosure
A legal term applied to any of the various methods of enforcing payment of the debt secured by a mortgage, or deed of trust, by taking and selling the mortgaged property, and depriving the mortgagor of possession.

FSBO
For sale by owner.
G
General Warranty Deed
A deed which conveys not only all the grantor’s interests in and title to the property to the grantee, but also warrants that if the title is defective or has a “cloud” on it (such as mortgage claims, tax liens, title claims, judgments, or mechanic’s liens against it) the grantee may hold the grantor liable.

Government National Mortgage Association (GNMA, Ginnie Mae)
A wholly-owned government corporation within the U.S. Dept. of Housing and Urban Development helping to finance government-assisted housing programs. Ginnie Mae guarantees securities backed by pools of mortgages. The mortgages are insured by the Federal Housing Administration (FHA), or guaranteed by the Veterans Administration (VA) or by the Rural Housing Service (RHS). Ginnie Mae securities are bought and sold through financial institutions that trade government securities.

Graduated Payment Mortgage
A type of a mortgage that has lower payments initially and then payments increase each year until the loan is fully amortized.

Grantee
That party in the deed who is the buyer or recipient.

Grantor
That party in the deed who is the seller or giver.
H
Hazard Insurance
Protects against damages caused to property by fire, windstorms, and other common hazards.

Homestead Exemption
The assessed value of a owner-occupied residential property may be reduced by the amount of the exemption for the purposes of calculating property tax. Available in some states.

HUD
U.S. Department of Housing and Urban Development. Office of Housing/Federal Housing Administration within HUD insures home mortgage loans made by lenders and sets minimum standards for such homes.

HUD-1 Settlement Statement
A standard form that shows all charges imposed on borrowers and sellers in connection with the settlement. RESPA allows the borrower to request to see the HUD-1 Settlement Statement one day before the actual settlement.
I

Impound
That portion of a borrower’s monthly payments held by the lender or servicer to pay for taxes, hazard insurance, mortgage insurance, lease payments, and other items as they become due.

Index
A published measure of economic conditions usually relative to other financial instruments such as Treasury notes or Treasury bills. The lender uses a particular index to calculate the interest rate on an adjustable rate mortgage (ARM) by adding a fixed margin to the index. The most common indexes are:
Constant Maturity Treasury (CMT)
Treasury Bill (T-Bill)
12-Month Treasury Average (MTA)
11th District Cost of Funds Index (COFI)
London Inter Bank Offering Rates (LIBOR)
Certificates of Deposit (CD) Indexes
Prime Rate
Click on index title for explanations and current values. [For historical values of the most frequently used indexes, click here]

Interest
A charge paid for borrowing money. See Mortgage Note
J
Joint Tenancy
Joint tenancy is one of the methods available for two or more people to hold title to real estate or personal property. It includes a right of survivorship, meaning that on the death of one joint tenant, his/her interests transfer to the remaining joint tenants.

Jumbo Loan
A loan that is larger than the conforming loan limit established by Fannie Mae or Freddie Mac. It often has interest rates a little higher than conforming loan.
L
Lien
A claim by one person on the property of another as security for money owed. Such claims may include obligations not met or satisfied, judgments, unpaid taxes, materials, or labor. See also Special Lien
Loan-to-Value Ratio (LTV)
The relationship between the amount of the mortgage loan and the value of the real property expressed as a percentage. For purchase loans the value of the property is the appraised value or the purchase price, whichever is less. For refinance loans the value is the appraised value.

A LTV of 90% means that you can borrow a maximum of 90% of the property value. If a LTV exceeds 80%, a Private Mortgage Insurance (PMI) — that insures the lender in the event a borrower defaults — is generally required.

Downpayment is the difference between the purchase price and the mortgage amount.

Lock
A lender’s promise to hold a certain interest rate and points for you, for a given number of days, while your loan application is processed. The interest rates quoted to you may stay the same, decrease, or increase from the day you apply for your mortgage. Lock-ins on rates and points might offer you a way to ensure that what you shop for is what you get.

However, a locked-in rate could also prevent you from taking advantage of rate decreases. If you think that rates will remain level or even go down, you may choose to bet on interest rates decreasing by electing to float until you go to closing.

Lock-ins of 30-60 days are common. If your lock-in period expires before you go to closing, you might lose the interest rate and the number of points you had locked-in. You may ask lender for a longer lock-in period. But bear in mind that lenders may charge you a fee for a longer lock-in period. Request information from the lender regarding lock procedures.

A Consumer’s Guide To Mortgage Lock-Ins A Federal Reserve Board publication.

M
Marketable Title
A title that is free and clear of objectionable liens, clouds, or other title defects. A title which enables an owner to sell his property freely to others and which others will accept without objection.

Margin
The number of percentage points the lender adds to the index rate to calculate the ARM interest rate at each adjustment.

Mortgage
A lien or claim against real property given by the buyer to the lender as security for money borrowed. Under government-insured or loan-guarantee provisions, the payments may include escrow amounts covering taxes, hazard insurance, water charges, and special assessments. Mortgages generally run from 10 to 30 years, during which the loan is to be paid off.

Mortgage Broker
A person (not an employee of a lender) who brings a borrower and a lender together to obtain a federally-related mortgage loan. A mortgage broker has access to a variety of lenders and often offers the most choice in loan programs. Mortgage brokers are paid a fee by the borrower or the lender when a loan closes.

Mortgage Commitment
A written notice from the bank or other lending institution saying it will advance mortgage funds in a specified amount to enable a buyer to purchase a house.

Mortgage Insurance Premium
The payment made by a borrower to the lender for transmittal to HUD to help defray the cost of the FHA mortgage insurance program and to provide a reserve fund to protect lenders against loss in insured mortgage transactions. In FHA insured mortgages this represents an annual rate of one-half of one percent paid by the mortgagor on a monthly basis.

Mortgage Note
A written agreement to repay a loan. The agreement is secured by a mortgage, serves as proof of an indebtedness, and states the manner in which it shall be paid. The note states the actual amount of the debt that the mortgage secures and renders the mortgagor personally responsible for repayment.

Mortgage (Open-End)
A mortgage with a provision that permits borrowing additional money in the future without refinancing the loan or paying additional financing charges. Open-end provisions often limit such borrowing to no more than would raise the balance to the original loan figure.

Mortgagee
The lender in a mortgage agreement.

Mortgagor
The borrower in a mortgage agreement.

Multiple Listing Service (MLS)
A service offered to participating real estate brokers that lists available homes for sale. The listings are published and distributed among the member brokers to assist in sales efforts.

A
Abstract (Of Title)
A summary of the public records relating to the title to a particular piece of land. An attorney or title insurance company reviews an abstract of title to determine whether there are any title defects which must be cleared before a buyer can purchase clear, marketable, and insurable title.

Acceleration Clause
Condition in a mortgage that may require the balance of the loan to become due immediately, if regular mortgage payments are not made or for breach of other conditions of the mortgage.

Adjustable-Rate Mortgage (ARM)
A mortgage where the interest rate is not fixed, but changes during the life of the loan in line with movements in an index rate. You may also see ARMs referred to as AMLs (adjustable mortgage loans) or VRMs (variable-rate mortgages).

Adjustment Period
This is the length of time for which the interest rate is fixed on an adjustable rate mortgage. After that period it will be adjusted. Typically once or twice a year depending on the index.

Agreement of Sale
Known by various names, such as contract of purchase, purchase agreement, or sales agreement according to location or jurisdiction. A contract in which a seller agrees to sell and a buyer agrees to buy, under certain specific terms and conditions spelled out in writing and signed by both parties.
Alienation Clause
Provision in a mortgage document stating that the loan must be paid in full if ownership is transferred.
Amortization
A payment plan which enables the borrower to reduce his debt gradually through monthly payments of principal.

Annual Percentage Rate (APR)
A measure of the cost of credit, expressed as a yearly rate. It includes interest as well as other charges. Because all lenders follow the same rules to ensure the accuracy of the annual percentage rate, it provides consumers with a good basis for comparing the cost of loans, including mortgage plans.

Appraisal
An expert judgment or estimate of the quality or value of real estate as of a given date.

Assessed Value
A figure in dollars determined for tax purposes by an assessor which reflects a property’s worth and which, unless exempt, is used to compute a tax dollar obligation by multiplying it by a tax rate.

Assessing Unit
A city, county, town or village with the authority to value real property for purposes of taxation.

Assumability
When a home is sold, the seller may be able to transfer the mortgage to the new buyer. This means the mortgage is assumable. Lenders generally require a credit review of the new borrower and may charge a fee for the assumption. Some mortgages contain a due-on-sale clause, which means that the mortgage may not be transferable to a new buyer. Instead, the lender may make you pay the entire balance that is due when you sell the home. Assumability can help you attract buyers if you sell your home.

Assumption
The agreement between buyer and seller where the buyer takes over the payments on an existing mortgage from the seller. The lender has to be notified and agree to the assumption. Assuming a loan can usually save a money since the buyer isn’t required to pay most of the closing costs.

Assumption of Mortgage
An obligation undertaken by the purchaser of property to be personally liable for payment of an existing mortgage. In an assumption, the purchaser is substituted for the original mortgagor in the mortgage instrument and the original mortgagor is to be released from further liability in the assumption, the mortgagee’s consent is usually required.
The original mortgagor should always obtain a written release from further liability if he desires to be fully released under the assumption. Failure to obtain such a release renders the original mortgagor liable if the person assuming the mortgage fails to make the monthly payments.
An “Assumption of Mortgage” is often confused with “purchasing subject to a mortgage.” When one purchases subject to a mortgage, the purchaser agrees to make the monthly mortgage payments on an existing mortgage, but the original mortgagor remains personally liable if the purchaser fails to make the monthly payments. Since the original mortgagor remains liable in the event of default, the mortgagee’s consent is not required to a sale subject to a mortgage.
Both “Assumption of Mortgage” and “Purchasing Subject to a Mortgage” are used to finance the sale of property. They may also be used when a mortgagor is in financial difficulty and desires to sell the property to avoid foreclosure.

Attached Home
A home that has one or more common walls adjoining another home. Condominiums and row houses are attached homes.
B

Balloon Mortgage
A short-term fixed-rate loan which involves smaller payments for a certain period of time and one large payment for the entire amount of the outstanding principal. Usually they have terms of 3,5, and 7 years.

Binder or “Offer to Purchase”
A preliminary agreement, secured by the payment of earnest money, between a buyer and seller as an offer to purchase real estate. A binder secures the right to purchase real estate upon agreed terms for a limited period of time. If the buyer changes his mind or is unable to purchase, the earnest money is forfeited unless the binder expressly provides that it is to be refunded.

Biweekly Mortgage
A mortgage which requires a payment for half the monthly amount every two weeks. As a result the loan amortizes much faster than a loan with normal monthly payments. For example, a 30 year fixed rate loan will be paid off in approximately 19 years.

Blanket Mortgage
A mortgage covering at least two pieces of real estate as security for the same mortgage.

Bridge Loan
An interim loan is made to finance a buyers new residence if the buyer is unable to sell his/her current residence but needs money to close the transaction.

Broker
See real estate broker

Building Line or Setback
Distances from the ends and/or sides of the lot beyond which construction may not extend. The building line may be established by a filed plat of subdivision, by restrictive covenants in deeds or leases, by building codes, or by zoning ordinances.

Buydown
With a buydown, the seller pays an amount to the lender so that the lender can give you a lower rate and lower payments, usually for an early period in an ARM. The seller may increase the sales price to cover the cost of the buydown. Buydowns can occur in all types of mortgages, not just ARMs.
C

Caps
A limit on how much the interest rate or the monthly payment can change, either at each adjustment or during the life of the mortgage. Most ARMs have an interest rate caps to protect you from enormous increases in monthly payments.

A lifetime cap limits the interest rate increase over the life of the loan. Lifetime caps can vary by lender, but most ARMs have caps of 5% or 6%. A periodic or adjustment cap limits how much your interest rate can rise at one time. Generally, a 6 month ARM will have a cap of 1% while a 1 year ARM will have a 2% cap.

Periodic and lifetime caps are quoted as two numbers as in 2/6 which would mean that periodic cap is 2% and the lifetime cap is 6%. Examples:

1. The initial interest rate is 4.5%, the index is 7%, and the margin is 3%,
then the new interest rate = 7% + 3% = 10%.
If the lifetime cap is 5% then
the actual new interest rate will be 4.5% + 5% = 9.5%.

2. The initial interest rate is 6%, the index is 5%, and the margin is 3%,
then the new interest rate = 5% + 3% = 8%.
If the periodic cap is 1% then
the actual new interest rate will be 6% + 1% = 7%.

ARMs which have an initial fixed period — 30/3/1, 30/5/1, 30/7/1 and 30/10/1 — can have also first adjustment cap. It limits the interest rate you will pay the first time your rate is adjusted. These ARMs are quoted as three numbers as in 5/2/5 which would mean that the first adjustment cap is 5%, adjustment cap thereafter is 2%, and the lifetime cap is 5%.

Two-Step loans — 5/25 and 7/23 — have only one adjustment after the first five or seven years of its term. They are quoted with a single first adjustment cap.
Capital Gains
Profit earned from the sale of real estate. The new tax code does not tax the profits from the sale of a home if the proceeds are used to buy another house costing at least as much as the sales price of the old one.

Certificate of Eligibility
The document issued by the U.S. Department of Veterans Affairs. It is required when applying for VA loans.
Certificate of Occupancy
Document issued by a local governmental agency that states a property meets the local building standards for occupancy.
Certificate of Reasonable Value
An appraisal issued by the VA approved appraiser which establishes the property’s current market value.

Certificate of Title
A certificate issued by a title company or a written opinion rendered by an attorney that the seller has good marketable and insurable title to the property which he is offering for sale. A certificate of title offers no protection against any hidden defects in the title which an examination of the records could not reveal. The issuer of a certificate of title is liable only for damages due to negligence. The protection offered a homeowner under a certificate of title is not as great as that offered in a title insurance policy.

Clear Title
A title that free of clouds and disputed interests.

Closing Costs
The numerous expenses which buyers and sellers normally incur to complete a transaction in the transfer of ownership of real estate. These costs are in addition to price of the property and are items prepaid at the closing day. This is a typical list:

BUYER’S EXPENSES                     SELLER’S EXPENSES

Documentary Stamps on Notes          Cost of Abstract

Recording Deed and Mortgage          Documentary Stamps on Deed

Escrow Fees                          Real Estate Commission

Attorney’s Fee                       Recording Mortgage

Title Insurance                      Survey Charge

Appraisal and Inspection             Escrow Fees

Survey Charge                        Attorney’s Fee
The agreement of sale negotiated previously between the buyer and the seller may state in writing who will pay each of the above costs.

Closing Day
The day on which the formalities of a real estate sale are concluded. The certificate of title, abstract, and deed are generally prepared for the closing by an attorney and this cost charged to the buyer. The buyer signs the mortgage, and closing costs are paid. The final closing merely confirms the original agreement reached in the agreement of sale.

Cloud (On Title)
An outstanding claim or encumbrance which adversely affects the marketability of title.

Commission
Money paid to a real estate agent or broker by the seller as compensation for finding a buyer and completing the sale. Usually it is a percentage of the sale price–6 to 7 percent on houses, 10 percent on land.

Commitment
A written agreement between a lender and a borrower to loan money on specific terms or conditions.

Condemnation
The taking of private property for public use by a government unit, against the will of the owner, but with payment of just compensation under the government’s power of eminent domain. Condemnation may also be a determination by a governmental agency that a particular building is unsafe or unfit for use.

Condominium
Individual ownership of a dwelling unit and an individual interest in the common areas and facilities which serve the multi-unit project.

Construction loan
A short term loan to pay for the construction of buildings or homes. These loans usually provide periodic disbursements to the builder as each stage of the building is completed. Generally followed by long term financing called a “take out” loan issued upon completion of construction.

Contingency
A condition put on an offer to buy a home; such as the perspective buyer making an offer contingent on his or her sale of a present home.

Contract of Purchase
See Agreement of Sale

Contractor
In the construction industry, a contractor is one who contracts to erect buildings or portions of them. There are also contractors for each phase of construction: heating, electrical, plumbing, air conditioning, road building, bridge and dam erection, and others.

Conventional Mortgage
A mortgage loan not insured by HUD or guaranteed by the Veterans’ Administration. It is subject to conditions established by the lending institution and State statutes. The mortgage rates may vary with different institutions and between States. (States have various interest limits.)

Conversion Option
Some ARMs come with options to convert them to a fixed rate mortgage during a given time period without having to go through a refinancing, which could cost up to 5 percent or 6 percent of the loan amount. For example popular conversion options for 1 year treasury-indexed ARMs include:
1. option to convert on the third, fourth, or fifth adjustment date, i.e. during the 37th, 49th and 61th months of the loan.
2. option to convert during the first five years on the adjustment date, i.e. during the 13th, 25th, 37th, 49th and 61th months of the loan.
The interest rate or points may be somewhat higher for a convertible ARM. Also, a convertible ARM may require a small fee at the time of conversion.

Conveyance
The transfer of title to the property from one party to another.

Cooperative Housing
An apartment building or a group of dwellings owned by a corporation, the stockholders of which are the residents of the dwellings. It is operated for their benefit by their elected board of directors. In a cooperative, the corporation or association owns title to the real estate. A resident purchases stock in the corporation which entitles him to occupy a unit in the building or property owned by the cooperative. While the resident does not own his unit, he has an absolute right to occupy his unit for as long as he owns the stock.

Credit Report
A report documenting the history of how you paid back the companies you have borrowed money from, or how you have met other financial obligations.

Many home buyers still being priced out
Valley shoppers use creative ways to afford homes

Glen Creno and Jonathan J. Higuera
The Arizona Republic
Mar. 5, 2006 12:00 AM

Homes less affordable for typical buyer

The party’s over, and the hangover may be here to stay.

Metropolitan Phoenix’s housing market has had the feel of a New Year’s Eve champagne binge as home values soared in recent years. That giddy performance isn’t likely to be duplicated this year, if ever again, in the Phoenix area as the market reverts to more normal behavior.
advertisement

And the character of the Phoenix area, which has been able to count on a steady pipeline of affordable new housing on its fringes, will be changed forever.

Prices in such housing frontiers as Maricopa, Apache Junction, Goodyear and Surprise now rival or exceed those of closer-in cities.

And first-time buyers must look farther afield for deals to help them get into this market.

One thing is certain after the frenzy dies down: Much higher home prices that are likely to stay near record levels and the sobering realization that Valley housing hasn’t been this hard to afford since the start of the past decade.

The Phoenix housing market, with its long-standing reputation for affordability, now sports a median price higher than the national median for both new and existing homes. The area led the country with a nearly 50 percent gain last year alone.

Some analysts point out that Valley housing still is affordable when compared with other Western cities, especially the hyper-inflated markets in California. But incomes are not increasing anything like home prices, and spending power is being diminished by pension cuts, more-expensive health care and higher energy costs.

“We have all these hits on disposable income, and we turn around and say we don’t have to worry about higher home prices. Give me a break,” said Jay Butler, head of the Arizona Real Estate Center at Arizona State University Polytechnic.

Home-price increases
Most Valley cities have logged steady increases in home prices since 2000 but the market exploded in 2005, when every city in Maricopa County recorded its best year in the past five for combined price gains of new and resale homes, according to an Arizona Republic analysis of housing data from the Information Market.

Price increases of 30 to 50 percent were common across the Valley, driven in part by investors looking to cash in on big gains in equity. In 2004, more than 15 Valley cities had overall median home prices in the $100,000s. But at the end of last year, only Buckeye, El Mirage, Youngtown and Sun City had medians that had not shot past $200,000.

As first-time buyers search for homes they can afford, increasing traffic and higher gas prices have to be figured into the equation. Developers are converting apartments into condominiums to create more buying opportunities for home shoppers who either can’t swing the payments on a single-family house, want a shorter drive to work, or both.

Darla and Tim Trendler faced a home-selling challenge that exemplified many of the forces shaping the Valley market at the start of this year. They listed their 1,500-square-foot home in east Mesa for $275,000 in January, hoping to buy a house they spotted in north Mesa that is closer to his job and to the couple’s extended family.

Neither house had sold by the third week of February and just one shopper, a California investor, had looked at the Trendlers’ home. The couple’s four-bedroom house should be ideal for first-time buyers but Darla said such house shoppers can have “sticker shock” if they don’t have equity to put into the deal.

“We’re a starter home,” she said. “It would appeal to someone with kids. We have a big yard. We’re not out of reach for first-time buyers but it’s a big jump after paying rent. . . . I feel sorry for them and am glad that we have a sizable amount of equity to put on our next home.”

She believes that many of the investors who bid up houses so quickly and made them more difficult to afford have cleared out of the Valley market. The couple hasn’t cut their price and the price of the target house has been reduced just $5,000, to $280,000.

“We would go down in price if the other house went down,” Darla said. “But we can’t sell it if no one looks at it.”

‘Overpriced’ market
Butler of ASU maintains an index that calculates housing affordability based on prices, incomes and mortgage rates. His latest numbers say that housing affordability in the metropolitan area is at a 15-year low. National housing consultant John Burns rated the Valley market as “overpriced in comparison to history” in a study covering data through November.

Highflying prices have made housing affordability a statewide concern. The Arizona Housing Commission says police officers, nurses, teachers and firefighters can’t afford to buy a home in half of Arizona’s biggest communities.

Retail and restaurant workers can’t even afford to rent in any of the 30 areas tracked by the agency in a report last year. Housing affordability becomes an economic-development issue when companies worry that their employees can’t afford housing.

“If workers can’t afford to buy a home or even maintain a home, they aren’t living in a stable environment and will likely be less productive on a job,” said Todd Cohen, head of the U.S. Chamber of Commerce’s Center for Workforce Preparation, at a Valley housing summit last year.

Higher prices are pushing buyers to take out more risky mortgage loans and to devote more of their income to housing. Some wind up “house poor,” Butler said, pouring so much of their income into home payments that they have little left for such things as restaurant meals or vacations.

Ethan and BreeAnn Allen used an interest-only loan to buy their first home, which they hope to move into this month. They used a 100 percent home loan that calls for paying interest only the first couple of years. The financing package also provides a five-year fixed interest rate and then goes to a variable rate for the next 25 years.

But the couple, both 22, say they’ll refinance before it gets to the variable rate.

“We’re more interested in the monthly payment than the overall price,” Ethan said. “We can refinance in a couple of years.”

The couple first started house hunting in late 2004. But because both were still students at DeVry University, they didn’t qualify for much. Since then, they’ve graduated and now hold full-time jobs. Ethan works as a programmer for TicketMaster and BreeAnn is a manager at Enterprise Rent-A-Car.

The dual income allowed them to qualify for a $220,000 home in the West Valley. They are expecting to pay about $1,500 a month for the three-bedroom, two-bath K. Hovnanian Home.

Financing homes
Home loans featuring some aspect of interest-only make up about 70 percent of the loans Laurie Scott writes these days. Scott is senior mortgage consultant at Suburban Mortgage in Scottsdale. Many assume they will refinance at some point but they are gambling that interest rates will be reasonable when they do.

“There’s no doubt the home-price appreciation over the last year and a half is pricing people out of the market,” said Tom Osselaer, executive vice president of Suburban Mortgage.

“That’s having an effect on our market as a mortgage lender. Some new programs are helping people qualify but there’s no doubt the general population has been affected.”

For brothers John and James Davis and their friend Eric Lettow, getting into a townhouse required a partnership between the trio. Using a program called Tenancy in Common, which allows all three to be equal partners on the deed, they bought an east Mesa town home for about $234,000.

“It was surprising to see the cost of homes, especially in areas like Chandler,” said John Davis, 25, a utility designer.

“We were basically pushed to the east Mesa area.”

The trio financed the new home with a traditional 30-year fixed rate loan for $200,000, and the remaining $34,000 with a 15-year fixed loan rate loan with a balloon payment.

The monthly mortgage will be about $1,750, including taxes, insurance and the homeowner association fee.

“We wanted to keep our monthly payments similar to what they are now, and we can do that by splitting it three ways,” said John Davis.

They will share a 1,575-square-foot home with three bedrooms and three baths.

Tracy Clark, an ASU economist, said that declining housing affordability threatens a fundamental pillar of the Valley economy.

“Our local psyche says we’ve built our (housing) growth on being affordable,” he said.

“Until recently, it was true in the absolute sense. I’m not sure I’d classify it as a disaster, but it’s something to be concerned about.”

US home loan applications fall despite rate drop
Staff and agencies
04 March, 2006
By Julie Haviv Wed Mar 1, 7:04 AM ET

NEW YORK - U.S. mortgage applications fell last week as lower interest rates failed to spur demand for loans to purchase homes, an industry trade group said on Wednesday.

The Mortgage Bankers Association said its seasonally adjusted index of mortgage application activity for the week ended February 24 fell 1.2 percent to 571.5 from the previous week‘s 578.5.

The MBA‘s seasonally adjusted purchase mortgage index decreased 1.9 percent to 400.8 from the previous week‘s 408.7. The index, considered to be a timely gauge of U.S. home sales, was also below its year-ago level of 440.0.

Borrowing costs on 30-year fixed-rate mortgages, excluding fees, averaged 6.18 percent, down 0.04 percentage point from the previous week.

The 30-year fixed-rate mortgage, the industry benchmark, is substantially above its 2005 low of 5.47 percent in late June, but below its 2005 high of 6.33 percent reached in the week of November 11.

Fixed 15-year mortgage rates averaged 5.84 percent, down from 5.87 percent the previous week. Rates on one-year adjustable-rate mortgages (ARMs) increased to 5.64 percent from 5.60 percent.

Last week‘s drop in rates, however, managed to marginally impact demand for home refinancing.

The group‘s seasonally adjusted index of refinancing applications increased 0.1 percent to 1,573.5 compared with 1,571.4 the previous week.

Analysts say an increasing number of borrowers have been converting ARMs into new fixed-rate loans as the difference between adjustable and fixed mortgage interest rates narrows. While this has been a factor behind the recent rise in demand for refinancing, it failed to spur activity last week.

The MBA‘s survey covers about 50 percent of all U.S. retail residential mortgage originations. Respondents include mortgage bankers, commercial banks and thrifts.

U.S. mortgage applications decrease last week-MBA
Wed Mar 1, 2006pm ET

NEW YORK, March 1 (Reuters) - U.S. mortgage applications fell last week as lower interest rates failed to spur demand for loans to purchase homes, an industry trade group said on Wednesday.

The Mortgage Bankers Association said its seasonally adjusted index of mortgage application activity for the week ended Feb. 24 decreased 1.2 percent to 571.5 from the previous week’s 578.5.

The MBA’s seasonally adjusted purchase mortgage index fell 1.9 percent to 400.8 from the previous week’s 408.7. The index was also below its year-ago level of 440.0. The index is considered a timely gauge on U.S. home sales.

Borrowing costs on 30-year fixed-rate mortgages, excluding fees, averaged 6.18 percent, down 0.04 percentage point from the previous week.

The group’s seasonally adjusted index of refinancing applications increased 0.1 percent to 1,573.5 compared to 1,571.4 the previous week.

© Reuters 2006. All Rights Reserved.

US mortgage rates unchanged on Wednesday-BestInfo
Wed Mar 1, 2006pm ET

NEW YORK, March 1 (Reuters) - The average rate on a 30-year U.S. mortgage with no upfront points was unchanged on Wednesday at 6-3/8 percent, according to BestInfo Inc.

If the mortgage market on Thursday continues in its current direction, rates may rise.

The 30-year mortgage rate with one upfront point was unchanged at 6-1/8 percent.

The 30-year mortgage rate with two upfront points was unchanged at 5-7/8 percent.

The Mortgage Point Monitor is provided exclusively to Reuters by BestInfo. The company, formerly BestRates Inc., is a Dover, Vermont-based provider of mortgage market analysis.

© Reuters 2006. All Rights Reserved.

Searches done in January 2006             

 25034     florida mortgage broker         

 4863       florida mortgage rate             

 4213       mortgage rate in florida         

 2383       florida mortgage company    

 1935       florida mortgage refinancing  

 1595       home mortgage florida           

 1229       florida bad credit mortgage    

 1129       florida mortgage application 

 978         florida second mortgage        

 916         florida mortgage quote          

 805         mortgage loan refinance florida             

 710         mortgage company in florida

 675         mortgage lender in florida      

 638         mortgage in florida 

 588         south florida mortgage lender

 506         south florida mortgage broker               

 468         best mortgage rate in florida  

 452         florida mortgage properties   

 388         south florida mortgage rate   

 376         florida in mortgage refinance 

 356         florida mortgage broker exam

 350         bad credit florida loan mortgage            

 334         florida mortgage loan debt consolidation              

 325         broker florida license mortgage state    

 316         central florida mortgage         

 306         commercial mortgage florida 

 300         florida low mortgage rate      

 292         florida adjustable rate mortgage            

 272         florida purchase mortgage loan             

 265         florida bad credit home mortgage          

 265         florida mortgage broker test  

 256         mortgage rate orlando florida

 246         jumbo mortgage rate florida  

 236         mortgage banker association florida      

 230         south florida mortgage company          

 217         current mortgage rate florida 

 208         expertise florida home in loan mortgage service   

 206         florida mortgage law              

 198         broker florida license mortgage school  

 192         mortgage rate jacksonville florida         

 186         mortgage rate in florida orlando            

 183         mortgage broker license in florida         

 179         mortgage company jacksonville florida

 175         compare mortgage rate florida              

 170         mortgage pembroke pine florida           

 167         florida jumbo mortgage         

 164         become broker florida in mortgage        

 159         bad credit florida mortgage refinance    

 159         florida home loan mortgage mortgage rate refinancing

Searches done in January 2006             

 24293     california mortgage rate         

 6776       california mortgage lender     

 4741       mortgage refinance california 

 2685       california mortgage refinancing             

 2241       california bad credit mortgage               

 1559       california mortgage quote      

 1464       california home mortgage loan rate       

 1209       california mortgage company

 903         california mortgage financing 

 861         application california home mortgage loan           

 812         california mortgage lead         

 756         california home equity mortgage loan   

 702         california jumbo mortgage loan             

 641         california en language mortgage refinancing          

 533         california mortgage loan company        

 528         california first mortgage        

 517         broker california home loan mortgage   

 488         california estate mortgage real               

 487         california mortgage information            

 465         california mortgage rate refinance         

 452         loan home mortgage rate in california   

 443         southern california mortgage 

 431         california mortgage broker license         

 408         ameriquest california co mortgage orange             

 404         california mortgage percent   

 399         mortgage san jose california  

 379         mortgage lender san jose california       

 371         california jumbo mortgage     

 356         california adjustable rate mortgage        

 351         mortgage lender in california 

 345         northern california mortgage broker      

 339         mortgage company san jose california  

 319         california estate loan mortgage real       

 311         mobile home mortgage california          

 290         california free lead mortgage  

 276         adjustable california loan mortgage rate

 263         california mortgage banker association 

 256         mortgage loan southern california         

 246         bankruptcy california lending loan mortgage        

 233         mortgage rate in california     

 226         california interest mortgage only          

 213         fixed rate mortgage california

 210         mortgage lender california home buying               

 207         california estate mortgage real southern

 204         southern california mortgage company 

 195         california mortgage online refinance      

 191         1st california mortgage          

 190         fremont mortgage wholesale california 

 188         mortgage modesto california

Searches done in January 2006             

 44471     online mortgage     

 2296       home mortgage online           

 2261       online mortgage calculator     

 1395       online mortgage quote           

 1142       fargo mortgage online pay well             

 1023       online mortgage broker          

 901         well fargo home mortgage online          

 645         mortgage loan application online          

 532         best california mortgage online rate      

 506         online mortgage company     

 458         online mortgage advice          

 399         online home mortgage loan    

 381         mortgage financing online      

 372         abn amro mortgage online     

 368         mortgage online top              

 354         best mortgage rate online      

 325         las vegas online mortgage      

 304         chase mortgage online           

 295         free online mortgage calculator             

 291         colorado online mortgage      

 267         home loan mortgage new online quote  

 260         online mortgage lending         

 243         low mortgage online              

 238         online second mortgage         

 228         online cheapest mortgage      

 225         online mortgage ireland         

 220         best refinance mortgage rate online       

 216         mortgage online standard      

 215         low online mortgage rate       

 203         online mortgage service         

 195         california mortgage online refinance      

 186         apply online for mortgage loan             

 184         broker course mortgage online              

 180         countrywide mortgage online payment

 177         online mortgage calculator uk

 173         2nd mortgage online              

 171         online mortgage bad credit    

 167         commercial mortgage loan online          

 158         mortgage online quote rate    

 150         florida mortgage broker course online   

 147         best mortgage interest rate online         

 144         national mortgage online       

 143         online debt consolidation mortgage      

 142         mortgage loan approval online              

 139         mortgage online qoclick second            

 134         mortgage online lowest rate  

 132         online mortgage arizona        

 129         online mortgage amortization calculator               

 127         online mortgage information 

 123         adverse apply credit mortgage online

Searches done in January 2006             

 14077     bad credit mortgage refinance

 6158       second mortgage bad credit   

 5351       bad credit mortgage lender    

 3245       bad credit mortgage company               

 2638       bad credit lone mortgage       

 2241       california bad credit mortgage               

 1229       florida bad credit mortgage    

 1070       bad credit mortgage rating     

 963         second mortgage loan bad credit           

 885         mortgage with bad credit chicago          

 772         bad credit mortgage financing

 708         bad credit mortgage refinance loan        

 649         mortgage loan for people with bad credit             

 586         mortgage application bad credit            

 572         bad credit mortgage loan lender            

 558         bad credit mortgage uk          

 515         bad credit houston mortgage texas        

 498         bad credit mortgage quote     

 463         bad credit mortgage rate        

 434         bad credit mortgage loan uk  

 407         2nd bad credit financing mortgage        

 407         bad credit mortgage repair     

 382         bad credit no money down mortgage    

 374         va mortgage loan bad credit   

 357         connecticut bad credit mortgage           

 348         bad credit mortgage loan ohio               

 343         bad credit mortgage lead        

 337         bad credit home loan mortgage services subprime               

 335         bad credit government loan mortgage   

 320         adverse bad credit loan mortgage          

 315         bad credit down loan mortgage zero     

 314         georgia bad credit mortgage   

 308         bad credit fair loan mortgage 

 306         new jersey bad credit mortgage            

 295         100 bad credit financing mortgage        

 291         bad credit mortgage texas      

 287         100 bad credit mortgage        

 283         bad credit good loan mortgage              

 281         bad credit home mobile mortgage         

 266         bad cash credit mortgage refinance       

 263         bad credit interest loan mortgage only  

 261         maryland bad credit mortgage               

 255         bad credit debt consolidation mortgage

 248         bad credit mortgage loan new jersey     

 237         mortgage company for people with bad credit    

 230         bad credit loan mortgage need               

 225         bad credit mortgage remortgage            

 219         bad credit kansas loan mortgage wichita              

 213         bad credit mortgage nj

Searches done in January 2006             

 87971     mortgage lender     

 6776       california mortgage lender     

 4631       home mortgage lender           

 2580       reverse mortgage lender         

 2322       mortgage lender network       

 1501       mortgage lender los angeles   

 1211       wisconsin mortgage lender    

 1145       ohio mortgage lender             

 1106       mortgage lender uk

 959         subprime mortgage lender     

 834         french mortgage lender          

 782         mortgage lender houston       

 749         mortgage lender dallas           

 725         mortgage lender phoenix       

 719         mortgage lender riverside      

 703         arizona mortgage lender        

 654         mortgage lender sacramento  

 609         private mortgage lender         

 572         bad credit mortgage loan lender            

 557         mortgage lender minneapolis 

 526         mortgage lender st louis        

 521         california reverse mortgage lender         

 507         100 mortgage lender              

 500         mortgage lender seattle          

 486         sub prime mortgage lender    

 479         georgia mortgage lender         

 464         mortgage refinance lender      

 453         mortgage lender new york     

 430         mortgage lender columbus ohio            

 427         mortgage lender commercial loan          

 416         top mortgage lender              

 408         mortgage lender indianapolis 

 387         real estate mortgage lender    

 379         mortgage lender san jose california       

 378         mortgage lender pittsburgh   

 351         mortgage lender in california 

 343         mortgage lender fort worth   

 322         national mortgage lender       

 305         mortgage lender association  

 302         mortgage lender milwaukee   

 289         mortgage lender akron ohio   

 288         mortgage lender rating           

 283         mortgage loan lender             

 276         austin texas mortgage lender 

 266         mortgage lender in uk            

 257         mortgage lender cincinnati     

 249         gay mortgage lender              

 244         mortgage lender san antonio  

 243         illinois mortgage lender         

 241         compare mortgage lender

Searches done in January 2006
10679    broker license mortgage
3206    broker commercial mortgage
2655    become broker mortgage
2220    broker chicago mortgage
2030    broker florida license mortgage
1819    broker mortgage training
1618    arizona broker mortgage
1399    broker las mortgage vegas
1208    broker mortgage seattle
1119    broker francisco mortgage san
1068    broker mortgage texas
1020    broker mortgage washington
1002    broker illinois mortgage
966    broker mortgage riverside
942    broker canada mortgage
925    broker career mortgage
921    broker minnesota mortgage
895    broker mortgage ontario
862    broker georgia mortgage
847    broker mortgage second
840    broker denver mortgage
778    broker mortgage oakland
766    broker dc mortgage washington
744    broker canadian mortgage
732    broker maryland mortgage
720    broker jersey mortgage new
687    broker course mortgage
671    broker florida licensing mortgage
665    broker licensing mortgage
656    add broker link mortgage
651    broker louis mortgage st
619    broker en language mortgage
602    broker design mortgage site web
591    broker mortgage pittsburgh
579    broker business mortgage
566    blanca broker costa mortgage mortgage spain spanish
560    broker mortgage template
550    broker education mortgage
528    atlanta broker mortgage
521    broker mortgage toronto
517    broker california home loan mortgage
506    broker florida mortgage south
492    broker cleveland mortgage ohio
460    broker independent mortgage
452    broker city kansas mortgage
444    boston broker mortgage
419    broker michigan mortgage
401    atlanta broker georgia mortgage
399    broker ireland mortgage

Searches done in January 2006             

 198766   mortgage loan        

 17725     bad credit loan mortgage       

 10361     refinance mortgage loan         

 5750       mortgage loan lead mortgage calculator 

 5145       home mortgage refinance loan               

 4980       interest only mortgage loan   

 4704       florida mortgage loan             

 3866       home loan mortgage refinance loan       

 3749       home mortgage loan rate       

 3405       houston mortgage loan          

 3030       second mortgage and home equity loan

 2964       online mortgage loan             

 2555       texas mortgage loan               

 2458       va mortgage loan    

 2407       colorado mortgage loan         

 2383       mortgage loan officer             

 2105       refinancing mortgage loan      

 2087       bankruptcy mortgage loan    

 1888       finance finances loan mortgage personal              

 1824       ohio mortgage loan

 1817       washington mortgage loan     

 1676       best mortgage loan 

 1651       new york mortgage loan        

 1588       second mortgage loan rate     

 1489       phoenix mortgage loan          

 1463       chicago mortgage loan           

 1416       mortgage bridge loan             

 1398       2nd mortgage loan 

 1356       colorado home mortgage loan

 1329       fha mortgage loan  

 1317       mortgage loan application     

 1303       mortgage loan refinance and debt consolidation   

 1270       minnesota mortgage loan       

 1244       interest only mortgage loan calculator  

 1233       california mortgage refinance loan         

 1202       denver mortgage loan            

 1142       home loan mortgage calculator              

 1121       mortgage loan tampa             

 1112       bad credit home loan mortgage services

 1105       pittsburgh mortgage loan      

 1093       mortgage loan processing      

 1063       home loan mortgage refinance mortgage               

 1032       link loan mortgage suggest    

 1014       atlanta mortgage loan            

 1010       home loan mortgage ok woodward       

 1006       nashville loan mortgage         

 996         poor credit mortgage loan     

 983         mortgage loan add link          

 965         birmingham mortgage loan    

 951         federal home loan mortgage corporation

Searches done in January 2006
2419    company home loan mortgage
2247    company countrywide mortgage
1853    company home mortgage
1720    company gmac mortgage
1526    company mortgage national
1371    company mortgage refinance
1359    chicago company mortgage
1295    company irwin mortgage
1207    best company mortgage
1085    city company mortgage national
1048    company dallas mortgage
1030    company mortgage new york
996    company houston mortgage
913    argent company mortgage
892    company insurance mortgage
826    company mortgage riverside
817    company dc mortgage washington
778    chase company mortgage
774    company mortgage oakland
757    company mortgage one option
752    company mortgage top
731    company mortgage vanderbilt
710    company florida in mortgage
696    company michigan mortgage
686    company lead mortgage
668    arizona company mortgage
658    company greentree mortgage
614    company fargo mortgage well
605    chase company manhattan mortgage
594    company mortgage philadelphia
590    company minneapolis mortgage
580    company leader mortgage
539    city company kansas mortgage
533    california company loan mortgage
525    company mortgage second
519    company ctx mortgage
508    company mortgage ocwen
506    company mortgage online
496    company denver mortgage
482    company mortgage ohio
446    cendant company mortgage
445    company mortgage pittsburgh
430    atlanta company mortgage
424    colorado company mortgage
405    company mortgage pennsylvania
403    company mortgage nassau
400    columbus company mortgage ohio
400    company in mortgage wisconsin
387    austin company mortgage texas

Searches done in January 2006             

 29610     mortgage interest rate            

 24293     california mortgage rate         

 20957     home mortgage rate               

 10363     refinance mortgage rate         

 9338       mortgage rate calculator        

 7768       low mortgage rate  

 6157       michigan mortgage rate          

 5225       mortgage loan rate 

 4863       florida mortgage rate             

 4419       home mortgage interest rate  

 3970       maryland mortgage rate         

 3731       mortgage rate canada             

 3049       30 year fixed mortgage rate   

 2734       30 year mortgage rate            

 2652       mortgage refinancing rate      

 2634       fixed mortgage interest rate   

 2525       florida refinance mortgage rate              

 2257       arizona mortgage rate            

 2074       va mortgage rate    

 1990       mortgage rate alabama           

 1903       new jersey mortgage rate      

 1893       mortgage rate st louis            

 1850       bank mortgage rate

 1588       second mortgage loan rate     

 1554       nj mortgage rate     

 1464       california home mortgage loan rate       

 1389       adjustable rate mortgage calculator       

 1294       mortgage rate colorado          

 1202       illinois mortgage rate             

 1171       jumbo mortgage rate              

 1133       georgia mortgage rate             

 1102       discount mortgage rate          

 1039       compare mortgage interest rate             

 1004       calculate mortgage rate          

 973         home mortgage refinancing rate            

 891         mortgage rate in canada         

 879         refinance mortgage rate comparison     

 840         california mortgage interest rate            

 803         mortgage rate history            

 785         minnesota mortgage rate       

 769         best home mortgage rate       

 743         fha mortgage rate   

 737         refinance mortgage loan home rate        

 729         15 year mortgage rate            

 716         mortgage loan interest rate    

 707         florida mortgage interest rate

 703         today current mortgage rate  

 679         mortgage rate uk    

 668         investment property mortgage rate      

Searches done in January 2006             

 393912   mortgage refinancing             

 10363     refinance mortgage rate         

 6348       florida refinance mortgage     

 4741       mortgage refinance california 

 3866       home loan mortgage refinance loan       

 3678       after bankruptcy mortgage refinance    

 2811       refinance home refinance mortgage refinance       

 2273       mortgage refinance calculator

 1951       st louis mortgage refinance    

 1789       refinance home mortgage rate

 1595       house mortgage refinance      

 1538       refinance mortgage new jersey              

 1371       mortgage refinance company

 1303       mortgage loan refinance and debt consolidation   

 1233       california mortgage refinance loan         

 1159       mortgage refinance washington             

 1077       mortgage refinance lowest rate             

 1048       michigan mortgage refinance 

 1013       best refinance mortgage         

 1000       mortgage refinance information            

 905         refinance a home mortgage    

 879         refinance mortgage rate comparison     

 858         refinance mortgage wisconsin               

 828         refinance mortgage application             

 805         mortgage loan refinance florida             

 737         refinance mortgage loan home rate        

 708         bad credit mortgage refinance loan        

 644         maryland refinance mortgage

 581         bad credit home mortgage refinance      

 552         mortgage refinance low rate  

 537         dallas mortgage refinance texas             

 536         home lead mortgage refinance               

 525         refinance mortgage quote      

 511         wyoming refinance mortgage loan        

 481         current mortgage mortgage rate refinance             

 478         refinance mortgage arizona    

 465         california mortgage rate refinance         

 461         real estate loan mortgage loan refinance

 448         utah refinance mortgage loan 

 423         mortgage cash out refinance  

 404         best en language mortgage refinance     

 393         2nd mortgage refinance loan  

 386         home mobile mortgage refinance           

 377         alaska refinance mortgage loan              

 377         missouri refinance mortgage loan          

 375         houston refinance mortgage  

 373         oregon mortgage refinance     

 369         mortgage broker home loan refinance   

 364         hawaii refinance mortgage     

 352         colorado refinance mortgage loan

Searches done in January 2006             

 20957     home mortgage rate               

 11216     american home mortgage       

 6173       phoenix arizona home mortgage           

 5145       home mortgage refinance loan               

 4873       company.com home link loan mortgage               

 4419       home mortgage interest rate  

 3866       home loan mortgage refinance loan       

 3749       home mortgage loan rate       

 3623       mobile home mortgage          

 3277       us bank home mortgage         

 3030       second mortgage and home equity loan

 2811       refinance home refinance mortgage refinance       

 2768       free home mortgage calculator              

 2419       home loan mortgage company              

 2296       home mortgage online           

 2102       refinance home mortgage home equity loan         

 1818       florida mortgage home loan   

 1762       home mortgage insurance      

 1609       home loa loan mortgage refinance         

 1534       second home mortgage          

 1464       california home mortgage loan rate       

 1416       first time home buyer mortgage            

 1356       colorado home mortgage loan

 1349       arizona home mortgage scottsdale        

 1194       wisconsin home mortgage     

 1112       bad credit home loan mortgage services

 1066       interest only home mortgage 

 1041       california refinance home mortgage       

 1010       home loan mortgage ok woodward       

 995         refinance home mortgage interest rate  

 973         home mortgage refinancing rate            

 905         refinance a home mortgage    

 899         bad credit home loan mortgage se         

 866         california home loan mortgage refinancing            

 826         best refinance home mortgage               

 769         best home mortgage rate       

 756         california home equity mortgage loan   

 737         refinance mortgage loan home rate        

 736         best refinance home mortgage loan rate

 715         lowest home mortgage rate   

 703         home equity mortgage refinance loan   

 662         california home loan mortgage va          

 651         condominium definition home hotel mortgage refinancing   

 619         home mortgage refinance calculator      

 603         chase manhattan home mortgage          

 597         interest only home mortgage loan         

 581         bad credit home mortgage refinance      

 570         home equity 2nd mortgage loan            

 562         federal home loan mortgage corp

Searches done in January 2006             

 567244   mortgage calculator

 9338       mortgage rate calculator        

 5750       mortgage loan lead mortgage calculator 

 3295       mortgage amortization calculator          

 2612       mortgage calculator canada    

 2273       mortgage refinance calculator

 2172       reverse mortgage calculator   

 1836       mortgage interest calculator  

 1314       mortgage loan payment calculator        

 1211       yahoo mortgage calculator    

 1138       monthly mortgage payment calculator 

 950         mortgage refinancing calculator             

 862         balloon mortgage calculator   

 750         arm mortgage calculator        

 731         mortgage affordability calculator          

 714         mortgage calculator with tax 

 688         simple mortgage calculator    

 665         bi weekly mortgage calculator              

 619         home mortgage refinance calculator      

 559         mortgage interest rate calculator           

 551         mortgage repayment calculator             

 524         loan calculator mortgage calculator       

 521         karl mortgage calculator        

 496         monthly mortgage calculator 

 481         mortgage calculator with tax and insurance          

 449         java mortgage calculator        

 439         well fargo mortgage calculator              

 432         80 20 mortgage calculator     

 418         calculator mortgage piti         

 407         bank rate mortgage calculator

 397         excel mortgage calculator       

 393         va mortgage calculator           

 391         mortgage calculator ireland    

 388         royal bank mortgage calculator             

 378         mortgage calculator amortization table 

 366         scotia bank mortgage calculator            

 342         calculator mortgage msnbc.msn.com site             

 330         second home mortgage calculator         

 329         home mortgage payment calculator      

 308         weekly mortgage calculator   

 307         florida mortgage loan calculator            

 295         free online mortgage calculator             

 278         mortgage calculator down payment      

 276         loan mortgage amortization calculator  

 262         best calculator mortgage refinance        

 260         add mortgage calculator to web site      

 253         mortgage calculator how much can i afford          

 251         amortization calculator florida mortgage              

 249         calculator html may mortgage style tag use “comments �   

 247         refinance mortgage rate calculator

Searches done in February 2006
Count    Search Term
1169855     mortgage
649116     mortgage refinancing
514558     mortgage calculator
399506     home mortgage
290775     mortgage rate
189033     second mortgage
161925     mortgage company
159433     mortgage loan
87807     mortgage lender
78875     florida mortgage
74781     mortgage broker
69942     mortgage lead
67357     reverse mortgage
61128     bad credit mortgage
60031     texas mortgage rate
53056     california mortgage
51282     mortgage quote
47164     adjustable rate mortgage
41006     countrywide mortgage
39057     gmac mortgage
29533     california mortgage loan
27585     online mortgage
26933     mortgage interest rate
26892     texas mortgage
26272     california mortgage rate
23539     current mortgage rate
22894     commercial mortgage
22706     mortgage marketing
22414     florida mortgage broker
22268     florida mortgage lender
22225     well fargo home mortgage
21603     mortgage payment
20347     well fargo mortgage
20138     national city mortgage
19034     mortgage insurance
18965     2nd mortgage
17961     best mortgage rate
16636     bad credit mortgage lender
16531     mortgage prices
16438     interest only mortgage
16259     ameriquest mortgage
15867     wisconsin wholesale mortgage
14522     best mortgage
14244     home mortgage rate
13902     arizona mortgage
13712     home equity mortgage
13706     chase mortgage
13298     internet mortgage lead
12626     mortgage financing
12449     bad credit loan mortgage
12265     lowest mortgage rate
12112     north carolina mortgage
12102     colorado mortgage
11919     option one mortgage
11800     mortgage washington
11423     conventional mortgage
11291     bad credit mortgage refinance
11232     mortgage uk
10541     mortgage new york
10449     equity mortgage
10420     california mortgage purchase
10231     rbc mortgage houston texas
10165     bad credit lone mortgage
9792     mortgage georgia
9777     missouri mortgage
9726     refinance mortgage rate
9565     maryland mortgage
9300     mortgage software
9044     finance mortgage
8997     new century mortgage
8942     american home mortgage
8941     washington mortgage refinancing
8883     emc mortgage
8829     mortgage application
8665     nevada mortgage
8662     refinance mortgage loan
8599     abn amro mortgage
8561     mortgage broker license
8538     michigan mortgage
8513     fixed mortgage
8468     second mortgage loan
8360     midland mortgage
8305     interest only mortgage calculator
8296     mortgage note buyer
8199     mortgage interest
8170     norwest mortgage
8145     mortgage houston
8095     suntrust mortgage
7944     green point mortgage
7933     minnesota mortgage refinance
7826     mortgage banking
7788     refinance mortgage virginia
7773     mortgage protection
7678     free mortgage calculator
7552     fha mortgage
7465     fixed rate mortgage
7396     mortgage dallas
7374     mortgage rate calculator
7274     bad credit home mortgage loan
7248     mortgage chicago