Although all real estate is local, this Bloomberg Report with Jeff Taylor, Managing Partner of Digital Risk, sums up the overall U.S. new housing numbers, current mortgage rates and lending practices, and provides a glimpse of mortgage lending criteria in the near future.

FHA loans are the largest source of low-down payment mortgages.  A buyer with less than stellar credit can purchase a property with as little as 3.5% down.  Starting April 1st, the FHA will institute it’s third increase since 2011 when it raises it’s premiums by 1/10 of a percent, or 10 basis points. Then, on […]

Tom Kelly addressed the issue of the mortgage interest deduction going away.  Many argue that it is one way of raising taxes and decreasing the bulging federal deficit.  What do you think? Related blog: Mortgage Interest Deduction: Should It Be Phased Out?

Well disappointingly, but not suprisingly, the Congressional “Super Committee” failed to come up with a plan to reduce the Federal deficit. The fact that the deficit needs to be reduced and there were no new proposals on the table of how to go about doing so, got me to thinking about some of the original […]

Are you ready to get off the fence and jump into the real estate market? Good for you…there is still a decent, though starting to dwindle inventory, and interest rates are still at historic lows. There is a lot of competition out there, especially from cash buyers, so be prepared befor you start looking at […]

Current consideration of phasing out Fannie Mae and Freddie Mac over the next 5-7 years has everyone in the real estate and mortgage markets speculating as to the effect it will have.  Created after the depression to help people buy homes, these two entities and FHA, now buy or insure 97% of home loans. Some […]

Since before I owned or started selling real estate, the mortgage interest deduction has existed and been one of the main benefits espoused for buying a home.  In addition to building up equity, it has been argued that this is one of the deductions that is helpful for lowering taxes due, especially for individuals and […]

Starting in March 1 for Freddie Mac and April 1 for Fannie Mae interest rates for loans over 15 years could almost double, even if you have perfect credit. Remember, if you are a buyer the cost of owning a home is more important than the price of the home.  Obviously you don’t want to […]

The main reason the current mortgage market is like the diamond trade is because the Fed’s current policy has been to create the market for mortgage backed securities.  The Fed agreed to spend $ 1.25 trillion through the first quarter of 2010 to purchase mortgage bonds, thereby keeping interest rates low and stimulating the housing […]

The first and most important step in buying a home is to get pre-approved by a lender for a mortgage.  This can be directly from a bank or credit union you do business with or through a mortgage broker.   Getting pre-approved will let you know how much house you can afford or, better yet, how […]