Adjustments of Appraisal Guidelines

Sorry for the absence over the last few days. We’ll get back to financial basics next week at the latest. For now there is good news on the horizon for home appraisals. Most people thinking about refinancing are concerned that their home will not appraise for the value needed to qualify for the loan. With home values dropping mainly because appraisers are taking into account the selling prices of homes in your neighborhood that were sold due to foreclosure or short sale ( that’s when the home is sold at a discounted price to avoid foreclosure) your home may not appraise for its true value. There have even been cases where a home was appraised for less than the cost to build it.

According to the NAHB (National Association of Home Builders) there may be help on the way. Click here for more…….

Source: Mortgage News Daily

6/29/09 Mortgage Commentary

Mortgage Market CommentaryThis weeks economic calendar is compacted into three days instead of the usual five, with no reports due out on Monday and with the markets being closed on Friday ahead of the 4th of July weekend. Tuesday information on chain sores sales from ICSC-Goldman & Redbook, the S&P Case-Shiller Home Price Index (HPI), Chicago Purchasing Manager Index (PMI), and Consumer Confidence all set to released. In addition, there is prominent Fed officials giving speeches, so investors will be paying close attention. On Wednesday, we get a glimpse of the labor market from the Monster Employment Index, Challenger Job-Cut Report and ADP Employment Report. Mortgage application information is provided by the Mortgage Bankers Association’s weekly survey. Major reports due are the ISM Manufacturing Index, Construction Spending and Pending Home Sales Index, all set for 7am pt. Then comes Thursday, when the all important June Employment Situation will be released by the Labor Department, detailing the non-farm payroll numbers, unemployment rate and average hourly earnings. To further increase the drama, Jobless Claims, Factory Orders and the Treasury’s announcement of the size 3yr, 10yr and 30yr securities to be auctioned the following week finish the short week. The amount of information in such a short time frame needed to be digested by traders can lead to extreme volatility, especially in front of a 3 day weekend. Buckle up, it may be a bumpy ride.

Back to Basics

As we all move through these trying economic times, I thought it might be useful to talk about subjects that will help us all not only survive but, dare I say it, thrive. Let me say from the beginning that I do not have all of the answers. The information provided will be a combination of my thoughts and those who are experts in the field.

A wise person once said that wisdom comes from knowing what you know, knowing what you don’t know and knowing who knows. I plan to use all of those traits in these articles. Please share your thoughts and resources you have found helpful. We can all learn from each other. Remember: What we can’t do alone, We can do together. With that being said, let’s start with the basics.

Note: We have changed the way we post to the blog. Starting today, you will see new blog posts on the front page. Click on SFBlog for “static” ,meaning permanent, posts. Confused? It will make sense when you click on SFBlog at the top of the page.

Article #1:

Save or Pay Down Debt? (Kiplinger.com)
Should you be putting money in savings or investments at the same time you’re paying off a loan?

That’s one of the most frequently asked questions we get at Kiplinger, and the answer isn’t always obvious. Even if you have run up a balance on a high-rate credit card, you may hear a nagging voice in your head urging you to keep plowing money into savings for retirement, college for the kids or a new home. (More)

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Your Mortgage Rate and the Closing Costs Associated with It

To qualify for a par interest rate requires a FICO score of at least 740 with a loan amount to home value ratio of 80% or less. This also assumes that borrowers pay all closing costs which includes 1 origination/discount point or broker charge(how mortgage bankers and brokers earn income.  I bring up this topic due to a recent conversation I had with a reader.  This reader sent me an email indicating they had been quoted a specific zero point mortgage rate, as is the usual reaction to such a statement I requested this reader to please send me their good faith estimate.  Sure enough, there were no points; however, upon further inspection I noticed a 1.00% closing cost labeled “broker fee”(see example below). So although the “fees” were not described as “points”, this client was still paying the same amount. Consumers beware of how lenders structure your good faith estimates….more

Daily rate updates

To see most up to date mortgage rates, go to “View Categories” click on Mortgage Rate Updates.