Mortgage Issues

Mortgage Programs Continue to Change

By Michael Zimmerman | Published: October 15, 2010

I recently attended a mortgage seminar sponsored by Pacific Access Mortgage.  Here are a few important takeaways: FHA – Good news is the upfront mortgage insurance premium just decreased from 2.25% to 1%.  The bad news is the monthly mortgage insurance premium increased to .85% (for down payments of 5% or more) and .9% (down … Continue reading Mortgage Programs Continue to Change

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Mortgage Rates at Record Lows

By Michael Zimmerman | Published: October 2, 2010

Freddie Mac reported the average rate for 30-year fixed rate mortgages fell to 4.32%, matching the lowest on records dating back to 1971.  The 15-year fixed rate mortgage average fell to 3.75%, the lowest on records dating back to 1991. In recent weeks, U.S. Treasury yields dipped as bond traders anticipated the Federal Reserve will increase … Continue reading Mortgage Rates at Record Lows

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One Credit Report is Not Enough

By Michael Zimmerman | Published: August 24, 2010

Fannie Mae recently instructed lenders to adopt a new policy that includes a second review of an applicant’s credit report just prior to closing.  The reason is simple:  the credit profile of a borrower may have changed between the time of the initial credit report review and the closing date. How will this impact the home … Continue reading One Credit Report is Not Enough

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How the Stock and Bond Markets Drive Home Loan Rates

By Michael Zimmerman | Published: August 9, 2010

The stock and bond markets have their own special relationship.  Often, while one moves higher, the other moves lower. Poor economic news normally causes money to flow out of stocks and into bonds because investors see bonds as a safer investment when the economy is weak.  An increased demand for bonds drives bond prices higher, … Continue reading How the Stock and Bond Markets Drive Home Loan Rates

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The Appraisal is a Vital Part of the Lending Process

By Michael Zimmerman | Published: May 25, 2010

What is a real estate appraisal? It is an expert, unbiased opinion of the market value of real property.  The appraiser performs a detailed site inspection which includes visiting the property, recording room measurements and noting amenity information.  Since no two properties are identical, an appraiser considers the property location, comparable sales in the area, … Continue reading The Appraisal is a Vital Part of the Lending Process

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