Allan

08/15/2018

Is this really true? Mothers what can you say? Just curious!

Massage is a wonderful way to express parents’ love and care for the babies. Infant massage can soothe the baby and help her to sleep. Baby massage is gentle, rhythmic

04/25/2014

Current Homeowners Turning to All-Cash Transactions
Current homeowners have increasingly financed home purchases with cash in recent months, according to the latest results from the monthly Campbell/Inside Mortgage Finance HousingPulse Tracking Survey. While cash purchases are traditionally associated with investors, current homeowners have turned to cash in an effort to gain an advantage in the bidding process and to avoid the red tape associated with mortgage financing.

Some 26.2 percent of home purchases by current homeowners in March relied solely on cash, based on a three-month moving average. That was up from the 12-month low of 22.8 percent seen in August.

A fair amount of home buyers appears likely to rely on cash going forward due to delays in the closing process that are often prompted by mortgages. In March, 30 percent of home purchases financed with a loan destined for Fannie Mae or Freddie Mac that had a down payment of at least 20 percent were delayed, according to HousingPulse.

The delays on government-sponsored enterprise (GSE) mortgages were predominantly due to underwriting issues and documentation, according to real estate agents. Appraisal issues also played a factor.

Even all-cash purchases aren’t immune to delays in closing, with 24 percent of home purchase transactions relying on cash financing experiencing delays in March.

However, the closing time on cash transactions remains at least 10 days shorter, on average, than the closing time for a mortgage that doesn’t experience any delays. And home purchases financed solely with cash that experienced delays in March closed in an average of 48 days in March, 14 days shorter than the average for delayed GSE mortgages.
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Fast Facts
Calif. median home price: March 2014:

California: $435,470
Calif. highest median home price by region/county March 2014: Marin, $1.16 million
Calif. lowest median home price by region/county February 2014:
Glenn, $140,000

Calif. Pending Home Sales Index:
March 2014: Increased 17.8 percent from 97.1 in February to 114.4 in March.

Calif. Traditional Housing Affordability Index: Fourth Quarter 2013: 32 percent (Source: C.A.R.)

Mortgage rates: Week ending 4/17/2014 (Source: Freddie Mac)

30-yr. fixed: 4.27% fees/points: 0.7%
15-yr. fixed: 3.33% fees/points: 0.6%
1-yr. adjustable: 2.44% Fees/points: 0.5%

01/22/2014

New Mortgage Rules Roll Out - What Will Be the Impact?
Daily Real Estate News | Friday, January 10, 2014

New mortgage rules take effect Friday that set out to protect borrowers against risky lending practices. One of the biggest changes is that borrowers will likely need to show more proof that they can actually afford the mortgage they’re applying for.

Here are two main terms to know from the new rules:

“Ability-to-repay” rule: Mortgage lenders must ensure borrowers can actually afford their loans over the long term. Applicants’ income, assets, savings, and debt against their monthly house payments will be more closely scrutinized. Borrowers likely will need to produce “even more tax records, pay stubs, and bank and investment account information,” USA Today reports.

Qualified Mortgage: Borrowers who meet the ability-to-repay requirements will likely be eligible for a QM. QM loans must meet at least some of the following guidelines: They cannot contain risky features, such as terms that exceed 30 years or interest-only payments; carry more than 3 percent in upfront points and fees for loans above $100,000; or push a borrowers’ total debt above 43 percent of their monthly income unless the loan qualifies to be backed by Fannie Mae, Freddie Mac, the FHA, or a small lender.

Lenders can still issue loans outside of the QM guidelines, but lenders will have to do so realizing they’ll have less protections against future lawsuits.

The Consumer Financial Protection Bureau estimates that about 92 percent of mortgages currently meet QM requirements.

Still, the real estate and mortgage industry, the CFPB, and others will watch implementation of the new rules closely to determine whether they make it more difficult for borrowers to qualify for mortgages.

The new rules may make it more difficult for borrowers who have fluctuating incomes or self-employed individuals to validate their incomes, according to Goldman Sachs. The 43 percent debt standard also may prove a hurdle for some borrowers who find they can’t qualify for the loan they need to buy the house they want, and some borrowers may find they need larger down payments to keep within that 43 percent rule.

The new rules may also cause some delays in lending, at least initially, says Keith Gumbinger, mortgage expert with HSH Associates.

"It'll be a muddy mess until the rules settle in," Gumbinger says.

Source: “New Mortgage Rules Aim to Prevent Risky Loans,” USA Today (Jan. 9, 2014)

Read More

REALTORS®, CFPB to Monitor New Mortgage Rules

Learn More About Qualified Mortgages

Education Campaign on New Mortgage Rules

01/22/2014

DID YOU KNOW?... A National Association of Home Builders survey reported that in 2013 the average new home was 300 square feet larger, at 2607 square feet, but the average lot shrank from about a half-acre to one-third of an acre, compared to 2011.

11/21/2013

For homeowners who did a short sale of their homes in 2013. Here is the IRS clarification on debt forgiveness........
The IRS has clarified in a letter that California’s troubled homeowners who sell their homes in a short sale are not subject to federal income tax liability on “phantom income” they never received. The IRS recognizes that the debt written off in a short sale does not constitute recourse debt under California law, and thus does not create so-called “cancellation of debt” income to the underwater home seller for federal income tax purposes. This clarification rescues tens of thousands of distressed home sellers from personal liability upon expiration of the Mortgage Forgiveness Debt Relief Act of 2007 on Dec. 31, 2013.

11/17/2013

Yes we are the world. Let us love one another. God is love

08/17/2013

Dedication and commitment are the key factors to success.

08/17/2013

Need to protect your mortgage ? Call me I will show you how

07/24/2013