Category Archives: Mortgage Information

As Interest Rates Rise, Hybrid Mortgage May be a Good Option

Posted on January 9, 2014 | Leave a comment

WASHINGTON — Higher mortgage rates for 2014? Count on it. Could this be the year to check out hybrid mortgages, which haven’t been popular lately? Maybe.

You can count on interest rates going higher because:

•The Federal Reserve intends to continue reducing its monthly purchases of mortgage bonds and Treasury securities, which will have the side effect of raising rates.

•The national economy finally appears to be picking up steam, based on the latest quarterly data. Higher growth rates in turn will increase demand for available credit and probably nudge rates higher.

•New federal regulations for mortgage lenders aimed at avoiding another bust take effect Jan. 10. Not only will loan officers and underwriters scrutinize applicants’ income, debt ratios and credit extra carefully, they’ll probably charge more for borrowers whom they see as a higher risk. Some mortgage economists predict that conventional 30-year, fixed-rate loans could go to 5.5% before year-end.

So what does this mean for you if you’re thinking about buying a house or refinancing and you want to nail down the most favorable interest rate and terms? Should you shop primarily for a traditional mortgage product that guarantees you a specific rate for 15 to 30 years?

Or should you check out what’s also on the shelf in the way of hybrids — loans that provide a guaranteed fixed rate for a pre-defined period of time, say five, seven or 10 years — then convert to a rate that can change annually?

The case for sticking with a traditional fixed-rate mortgage is straightforward. Though 30-year rates are more than a percentage point higher this month than they were a year earlier, they are still not far off multi-decade lows.

Disclaimer: for information and entertainment purposes only

Will Buyers Get Caught In A Squeeze Play?

Posted on January 4, 2014 | Leave a comment

Federal agencies haven’t been functioning much this month, but six of them are looking at a proposal that could squeeze huge numbers of buyers out of the mortgage market: a mandatory 30 percent down payment for borrowers who seek the best rates and terms.

The regulatory agencies have set an Oct. 30 deadline for public comments on a 505-page proposal that creates new rules for bond financing of loans for homes, autos and other assets.

Among the housing proposals is something known as “QRM-Plus.” It would require 30 percent down or more for purchasers, tough credit standards and a ban against second liens on properties at closing.

Though the proposal was floated as an alternative to a much less onerous standard preferred by a majority of the regulators, it is being taken seriously by housing, mortgage, civil rights and consumer groups — nearly 50 of whom are part of a coalition opposing its adoption.

The six agencies include the Federal Reserve, the Federal Deposit Insurance Corp., the Federal Housing Finance Agency, the Department of Housing and Urban Development, the Office of the Comptroller of the Currency, and the Securities and Exchange Commission.

San Diego – Foreclosures Up In October but still down for years

Posted on November 20, 2013 | Leave a comment

Foreclosures in San Diego County ticked up from September to October, but over the past 12 months are still down more than 65 percent.

Last month, lenders foreclosed on 173 properties in the county, up 18.5 percent from the 146 in September, real estate tracker DataQuick reported Tuesday. Percentage wise, it was the biggest month-to-month jump in foreclosures since they rose from 715 in December 2010 to 959 in January 2011, a 34.1 percent gain.

Mark Goldman, a loan officer and real-estate lecturer at San Diego State University, said the number of foreclosures can depend on internal factors at banks, and did not express concern about the jump.

Has the value of your home been affected? Contact the real estate appraisers at www.scappraisals.com for your value questions.

“I just attribute that to noise,” he said. “It’s such a small number. In general, I would expect foreclosures to be going down as property values increase more and more. When there’s equity in the property you can sell it.”

In October, the median price of a home in San Diego County was $412,750, up 17.9 percent from October 2012, DataQuick reports. Prices bottomed out at $280,000 in January 2009, when there were 1,107 foreclosures.