After sitting out 2010 with two knee surgeries, both on the same knee, I had my “coming out party” on Saturday, November 19, 2011 at the 29th El Tour de Tucson – one of the largest one day cycling events in the US. People come from all over the world to enjoy a fabulous day of riding in sunny Tucson, Arizona. Attendence at this years’ event was the 2nd largest in it’s history!
My goal was simple – finish the 42 mile race without a crash (with the “rubber side down”) and feeling good. The fact is that I felt so good I pushed it to a 40th place finish among the 1,000 or so starters! Talk about surprised – you know I was!!! 🙂
My personal thanks go to Richard DeBernardis the founder and race promoter of the PBAA events which includes El Tour de Tucson. Richard does so much for the Tucson community and without him Tucson would not be the cycling community it has become. Also a big thanks to all the volunteers, police and to all the drivers in Tucson that put up with the traffic & intersection wait times to let us ride. Nice to see the community come together for this fabulous event!
What’s Ahead For Mortgage Rates This Week : December 6, 2010
Only Friday’s Non-Farm Payrolls report kept mortgage rates from really soaring.
According to the government, 39,000 net new jobs were created in November, and September’s and October’s data was revised higher by a combined 38,000. The sum of these figures fell well short of Wall Street expectations — investors has expected 146,000 net new jobs in November.
As a result, mortgage rates made their largest, intra-day improvement of the year Friday morning, although they slid higher through the afternoon. Rates fell 1/8 percent Friday as compared to Thursday and rate shoppers may see that momentum carry forward into this week.
Fed Chairman Ben Bernanke gave a televised interview Sunday evening in which he said, among other things:
“The fear of inflation is way overstated.”
Additional bond market support is “certainly possible”.
Both comments should help to allay inflation concerns, and may lead mortgage rates lower this week. If you’re floating a mortgage rate, keep a watchful eye on markets and be especially wary if mortgage rates start to rise again. November was rough on mortgage bonds.
If December follows suit, expect mortgage rates to approach 6 percent.
Call Todd Abelson and Tyler Ford at Sunstreet Mortgage (520)-331-LEND for all your mortgage needs!
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We have all lived through MANY changes in 2009, not all good. However, we are at a critical point in the real estate and credit markets where it is the best time we may EVER see in which to buy a home or refinance an existing loan. Why? Rates are within ¼% of all-time lows, inventory is high, and the Federal Government is offering HUGE tax credits to first-time and move-up buyers.
BUT THIS IS ABOUT TO CHANGE AND YOU REALLY NEED TO BE AWARE!
FACT – the sole reason mortgage rates have remained low is because the Government committed to buying $1.25 TRILLION in “Mortgage Backed Securities” from Fannie Mae and Freddie Mac. This Program officially ends March 31, 2010. I guarantee you rates will increase swiftly and dramatically at that time. I expect rates to be about 6% by springtime and about 6.5% by autumn – up from the “4.somethings” we’re seeing now.
FACT – to qualify for the Federal Tax Credit of up to $8,000 for first-time homebuyers and up to $6,500 for move-up homebuyers you MUST have a formal contract in Escrow before May 1st. Given the activity I saw last November (before the extension) there was a noticeable run-up in prices and reduction in Seller concessions.
FACT – credit guidelines for Conventional, FHA & VA loans continue to tighten, while costs to obtain these loans increase. Effective April 5th, FHA is increasing the cost of their Up-Front Mortgage Insurance by ½% so, for example, the cost to purchase or refinance a $150,000 loan will cost you $750 more! And they’re not done; effective “early summer” FHA is increasing the cost of the Monthly Mortgage Insurance (amount unknown).
There is no other way to get across the TRUE message out other than for me to say:
If you are considering buying a home, I STRONGLY SUGGEST that you get in contract and lock in your rate in the next 45 days.
If you are considering refinancing your mortgage, I STRONGLY SUGGEST you proceed NOW! Rates are drifting higher and will continue until March 31.
If you or someone you know is considering purchasing a home or refinancing their existing mortgage please pass along this information. I cherish your trust and appreciate the opportunity to be of service to you, your family, friends and co-workers!
Call Todd Abelson and Tyler Ford at Sunstreet Mortgage in Tucson, Arizona for all your Mortgage Needs!
Attached is an interesting article I found while researching something today. Evidently the credit score models DO included authorized user accounts again – they stopped for a while but then went back to the old rules… QUIETLY!
However, Underwriters are being required to either downgrade the loan to a “manual underwrite” OR ask for the borrower to be removed from those accounts as an authorized user and the reports to be rescored.
It’s official! FHA is increasing the up-front mortgage insurance premium to shore up it’s finances. Beginning with case numbers assigned on Apri 5th, 2010 the fee increases from 1.75% to 2.25%. Almost as importantly, the fee for Streamline refinances increases from 1.50% to 2.25%. This makes the FHA loan 1/2 point more expensive than before.
As I’ve said before, FHA is balancing their shortfalls from yesterday’s defaults with tomorrow’s borrower.
The Monthly Mortgage Insurance factors will be increasing “this summer” but nothing official released yet. The remain the same for the time being…
In an attempt to recoup past losses, reduce the potential for future losses and sure up FHA’s sagging reserves a staggering series of changes will be implemented “soon”. Click here for article
First, and most immediate, the Up-Front MIP for all FHA loans will be increased from 1.75% to 2.25%. The start date for this increase will be announced today but Ianticipate it will begin with case numbers assigned starting February 1st. Following this in “the spring” will be an increase in the monthly MI fee as well.
Second, down payment requirements will be increase for 3 1/2% to 10% for “low FICO score borrowers” (under 580). This change is expected to be implemented “early summer”.
Third, the level of allowable “Seller Concessions” will be cut in half from 6% to 3%; this also will be implemented “early summer”.
Fourth, increased monitoring and enforcement on FHA lenders effective immediately.
These changes are H-U-G-E and will affect the entire market. While just loosening the anti-flipping rules 48 hours ago, this changes tighten – good for taxpayers, bad for sellers, buyers and the real estate markets.
For these and other breaking stories, stay in touch and call Todd Abelson and Tyler Ford at Sunstreet Mortgage in Tucson Arizona.
Effective February 1, 2010 FHA is eliminating a rule that they FINALLY agree has been negatively affecting the Real Estate market given it’s current condition. Previously, a property was not eligible for FHA financing if it was being sold within 90-days of the last sale UNLESS it was a bona fide foreclosure from an institutional lender or non-profit agency (other limitations applied). The goal was to eliminate predatory “flipping” which did little more than jack up the price of housing.
However, there are MANY investors taking advantage of the current market by buying substandard homes acquired through foreclosure, then performing “floor to roof” remodels and selling to occupant buyers. Such ventures clearly helped homebuyers BUT these investors were prohibited from reselling for at least 91 days.
In the current ruling (click here for full excerpt), the 90-day seasoning requirement is being waived with the following new conditions:
All transactions must be arms length (no relationship between seller and buyer).
No “identity of interest” deals allowed (no parents-to-kids)
If the sales price is 20% or more over the last sales price the lender must either: a) provide supporting documentation and/or a 2nd appraisal, and b) order an independant inspection on the property and include it with the loan file.
We await the official FHA Mortgagee Letter, but this is clearly great news guaranteed to help both Buyers and Investors!
Call Todd Abelson and Tyler Ford at Sunstreet Mortgage in Tucson Arizona for all your Mortgage needs!
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It’s easy to do, and there’s NO purchase required! All you have to do is complete the following items, and your name will be placed into the drawing, scheduled for Friday, Feb 26, 2010 which we will film and post on our blog.
To have a chance at winning $100 BUCKS please follow the steps below:
First, you must Comment on THIS blog post and then complete 2 of the following 3 items:
In your Comment post, make sure to include your name and reference your Twitter -or- Facebook name (if applicable), or other direct contact information so we can get in touch with you.
The winner to be drawn randomly from the Comment post list on Friday, February 26, 2010.
If you’re in Arizona, we’ll meet with you, capture a brief presentation video and post the interview on this blogsite. Only one entry per person; employees of Sunstreet Mortgage or their families are not eligible – sorry!
While here, check out our “Categories” (on the right) and catch up on what you’re missing.
Don’t forget to check out our website and stay up-to-date on what’s going on in the Mortgage world with Todd Abelson and Tyler Ford, Sunstreet Mortgage, Tucson, Arizona.