Category: loan limits decrease

When will I qualify for a mortgage after a short sale or foreclosure?

Many clients who have gone through a short sale or foreclosure after 2007 are now asking me the question, “When will I qualify for a mortgage?” Housing is once again affordable and people want to take advantage of rock bottom deals. Prices in Phoenix, Arizona are hovering around the bottom. You can see from this chart that there haven’t been any drastic plunges or spikes over the past 9-12 months as shown in previous years. Now is the time to buy a house and become a homeowner once again. Now is the time to relocate, invest in a winter home, buy a retirement home, and invest in rental properties and fix-n-flips.


Another reason people are asking if they qualify to purchase a home again is because the FHA loan limits are said to be dropping significantly October 1, 2011. That means the buying power in the 3.5% down payment price range is much lower. In Maricopa County Arizona, the loan limit is currently $346,250. As of October 1st, it will be $271,050. That’s a decrease of $75,200 in buying power!

Others questioning, “When will I qualify for a mortgage?” are homeowners who elected to do a strategic default because the equity is so upside down. These homeowners are hundreds of thousands upside down in a property and are well aware that the value will never rebound in their lifetime to what they originally paid, so they cut their losses short. They are now looking to invest in properties. Interest rates are low, prices are at bottom and there are several opportunities to fix up a foreclosed house and flip it – or buy and hold it to take advantage of the booming rental market.

Finally, the answer to the question: When will I qualify for a mortgage after a short sale or foreclosure?

The Waiting Period to Qualify for a Home Mortgage after a Short Sale, Foreclosure or Bankruptcy

Call Kelli Grant to set up your custom web portal of MLS listings that match the property criteria, location and price range you’re interested in researching. You’ll receive notification emails up to once a day when there are price changes or new listings to see. 

Kelli Grant specializes in short sales, pre-foreclosure options such as the HAFA program, and strategic default options in the cities of Phoenix, Scottsdale, Cave Creek, Anthem, Glendale, and Peoria. Kelli Grant is the neighborhood specialist for Sonoran Foothills and Tramonto. If you need to speak to a reputable, reliable real estate attorney or CPA about the legal and tax consequences of a short sale or strategic default, contact Kelli Grant.

Kelli Grant, Personal Realtor® “Moving People Through Inspiration and Good Deeds”

Call or Text 602-799-5420

 

 

When will I qualify for a mortgage after a short sale or foreclosure?

30 YEAR FIXED RATES UP TO 4.125%

30 YEAR FIXED RATES UP TO 4.125% – MARKET VOLATILITY THE NEW NORM

The market had another wild week – pushing rates up and down each day. The wild swings are becoming the new norm. What this means for you as a consumer is that your mortgage quote could change thousands of dollars in a very short period of time. That is the market that we are in – so as always, if you like the rate/costs – lock it in as soon as you can, as it may not be there for long.

The bond market closed last week 37 basis points higher, which in theory should have improved mortgage rates. Unfortunately it did not on all mortgage products and here is why. Rates go up quicker than they go down. What this means is that lenders are more willing to change their pricing higher when the bond market is down, then they are to offer better rates / pricing when the bond market goes up.

Rates are still great and near all time lows set in the 1950’s. Below is current pricing paying a point or less on a 30 day lock:

30 year fixed: 4.125% paying .83 pt, 4.375% paying 0 pts

20 year fixed: 3.875% paying .6 pts , 4.125% paying 0 pts

15 year fixed: 3.375% paying .45 pt, 3.625% paying 0 pts

5/1 ARM: 2.875% paying .7 pts, 3.125% paying 0 pts

7/1 ARM: for 3% paying 1 pt, 3.375% paying 0 pts

30 year fixed FHA: 3.875% paying .85 pts, 4.125% paying 0 pts

15 year fixed FHA: 3.25% paying .6 pts, 3.5% paying 0 pts

30 year fixed VA: 3.875% paying .7 pts, 4.125% paying 0 pts

30 year fixed High Balance Loan: 4.375% paying .32 pts, 4.5% paying 0 pts – ONLY AVAILABLE FOR A LIMITED TIME FOR VERY HIGH LOAN BALANCES

LAST CHANCE FOR HIGH BALANCE CONFORMING LOAN LIMITS:

The max high balance conforming loan limit has been $729,750 since the ECONOMIC STIMULUS PACKAGE of 2008. This max loan limit will be going down to 625,500 in the highest priced areas, and lower than that in the mid high balance priced areas.

You have to get these started now if you want to close before the deadline of September 30th, 2011.

 

30 YEAR FIXED RATES DROP TO 4% / WILD WEEK ON WALL STREET

30 YEAR FIXED RATES DROP TO 4%

Last week was one of the craziest weeks in the financial markets since 2008. The stock market and interest rate market fluctuated greatly every day, sometimes changing mortgage pricing by thousands of dollars in a few minutes. Things can change fast due to the extreme volatility in the market. The good news is that mortgage rates went down to their lowest levels ever.

Technical indicators show that the bond market is overbought right now – which means interest rates are really lower than they should be. I expect a correction in the near future pushing rates/pricing back up a little bit – maybe to 4.25% on a 30 year fixed product. My advice would be to lock in pricing if you are floating a loan or considering starting a new loan.

Below are current rates and pricing for a well qualified borrower.

30 year fixed: 4% paying 1 pt, 4.25% paying 0 pts

20 year fixed: 3.875% paying .8 pts , 4.125% paying 0 pts

15 year fixed: 3.375% paying 1 pt, 3.75% paying 0 pts

5/1 ARM: 2.875% paying .61 pts, 3.125% paying 0 pts

7/1 ARM: for 3.125% paying .83 pts, 3.5% paying 0 pts

30 year fixed FHA: 3.875% paying .9 pts, 4.25% paying 0 pts

15 year fixed FHA: 3.25% paying .45pts, 3.5% paying 0 pts

30 year fixed VA: 3.875% paying .75 pts, 4.125% paying 0 pts

30 year fixed High Balance Loan: 4.375% paying 0 pts

THE WILD WEEK ON WALL STREET

Below is how the DOW ended each day last week:

Monday: -634.76

Tuesday: +429.62

Wednesday: -519.83

Thursday: +116.63

Friday: +125.71

In a normal market, a large swing is 100 pts one way or the other. This is a market that over reacts to most financial news. Panic can set in very easily. If you look at the stock market – it has ended lower 4 of the past 5 weeks. When stock markets are down, interest rates usually get better.

Typically a stock market can only go one way for so long before you get some sort of correction back the other way. I expect that to happen again here. That is why I recommend taking advantage of the recent rate dip if you are on the market for a home loan. Even though the FED on Tuesday maintained their commitment to keep rates low for at least the next 2 years, they have already used most of their tools to keep rates low. I do expect mortgage interest rates to remain low, but I do not expect 30 year fixed rates to remain as low as 4%.

30 year fixed rates drop to 4% , wild week on Wall Street

TODAY’S MORTGAGE RATES – MORTGAGE RATES DROP TO LOWEST LEVELS OF THE YEAR / LOAN LIMITS DECREASING ON OCTOBER 1st

TODAY’S MORTGAGE RATES / MORTGAGE RATES DROP TO LOWEST LEVELS OF THE YEAR:

The US debt deal looks like it will be completed.  Most of us expected this to get done in the 11th hour, but when you don’t know, the markets get nervous. Even though the deal looks to be done, the stock market is down 100 points on Monday morning, pushing the bond markets up and mortgage rates lower.

Last week was a see-saw all week. Luckily we had a huge day on Friday with the bond market closing 81 bps up, pushing mortgage rates and pricing to the lowest levels of the year. Last week, the bond market closed 91 bps up. Right now is a great time to lock a loan, below is the approximate pricing for a well qualified borrower on a variety of loan products.

30 year fixed: 4.375% paying .1 pts, 4.49% paying 0 pts

20 year fixed: 4.25% paying 0 pts , pricing rises over 1 pt below 4.25%

15 year fixed: 3.5% paying .9 pts, 3.75% paying 0 pts

5/1 ARM: 2.75% paying .7 pts, 3% paying 0 pts

7/1 ARM: for 3.125% paying .8 pts, 3.375% paying 0 pts

30 year fixed FHA: 4.25% paying 0 points, pricing rises over 1 pt below 4.25%

15 year fixed FHA: 3.375% paying . 6 pts, 3.625% paying 0 pts

30 year fixed VA: 4.25% paying 0 points, pricing rises over 1 pt below 4.25%

30 year fixed High Balance Loan: 4.375% paying .8 pts, 4.625% paying 0 pts

CONFORMING LOAN LIMITS CHANGING: On October 1st of 2011, loan limits are expected to decrease substantially for CONFORMING and FHA loans.

In many high priced areas, CONFORMING and FHA loan limits were temporarily increased with the Economic Stimulus package of 2008. For example, in most parts of Southern California, you can now do a CONFORMING and FHA loan with a loan amount up to $729,750. Since CONFORMING loans price substantially better than JUMBO loans, many customers have been able to refinance or purchase with high balance loans at a very low rate.

These temporary loan limits are expected to decrease substantially on October 1st of this year. FHA loan limits in many areas will also decrease lower than their current allowable loan amount.

If you want to take advantage of these temporary loan limit increases, I would act before August 15th, 2011. The loan has to be completed and delivered before October 1st to get the old guidelines. Even though refinance typically only take 2-3 weeks, purchases can take 4-8 weeks. I would not wait if you are a consumer that can take advantage of the current program.

Today’s Mortgage Rates – Down to lowest levels of the year.  August 1st, 2011.

Licensed in Arizona, California, and Colorado.