Derogatory credit refers generally to items which count against you for your credit score. Minor credit items such as a single late payment may not show up at all on a credit report. Say you paid two days late. You may see a late fee on your next bill, but usually you receive consideration as current as of the next […]
Interest rates go up and go down. Usually, the movement comes from changes in the policy of the Federal Reserve couple with inflation outlook by consumers and professional. But even obscure items or policies can affect your mortgage rate. That’s well known and home buying and refinancing goes in cycles depending on those rates. Not only is the Fed raising […]
At My Winning Mortgage we do not originate mortgages, loans or referrals to any lenders. This site provides mortgage education, news, and information. Get a better rate and better loan options. Plan better, overcome questions and obstacles and avoid default. Learn the key items behind getting approved at the best rate. Should I buy now? Should I refinance? What moves […]
What should you do with your mortgage when a disaster hits? What are the options and obstacles? It’s not common, it’s not uncommon. Damage to your home can occur from various disasters. Hurricane, tornado, flood, wildfire, earthquake, blizzard/ice storm. Even the most recent Covid-19 pandemic resulted in a declared disaster. When these events occur, federal as well as state declarations […]
In late 2022 and now 2023, we are now seeing a reversal of the froth infecting the market from the Fed actions of 2019, 2020, and 2021. The Fed has already announced it will reverse the actions it has taken to cause massive price increases. For 2023, froth in the market is dead. The FOMO by homebuyers has taken a […]
What are some of the most common complaints about mortgage origination and lenders? How can you avoid mortgage origination complaints? In order to get to your goal and navigate the financing process, there are common complaints from borrowers about lenders which point to obstacles to overcome. Every borrower is unique, so complaints vary. Different studies can show different results as […]
Down payments and risky mortgages — of course the down payment matters. Winning Mortgage, Winning Home covers a variety of ways to manage the down payment amount against the loan pricing. The interest rate paid on a loan has a detailed scale of penalties covered in the book and the book provides insights on using them to your advantage. But […]
Most first time home buyers misunderstand their budgets. These are not only buyers, but also shoppers who didn’t buy. According to a recent survey by Realtor.com, most first time home buyers were surprised at what they were able to afford. More than two-thirds found that their budget wasn’t accurate. Some first time home buyers found they could afford more home […]
March Update- Another new 40 year inflation record. February Update– a new 40 year record on consumer price increases and a new all-time record on producer price increases. Ho hum, yawn, another record in inflation from the Fed and Biden. January Update. Once again, inflation set new records or new 40 year highs. Consumer prices jumped 7.5% on an annual […]
FEED | CLOTHE | CARE The Storehouse is a regional organization providing assistance to those in need and the food insecure. For more than 20 years, The Storehouse and its sister organizations have provided food assistance to food insecure individuals and families. Assistance is provided to more than 1000 families per month. Its mission includes FOOD CLOTHING HOPE FOR LIFE […]
Updated. EXERCISE CAUTION in all home and market investments for the next 60 days! Many data points released on November 24 show the Federal Reserve has room to become more aggressive in fighting inflation. With the Federal Reserve pushing rates up now, their previous rate forecast looks incompetent. The Federal Reserve ignored the broad evaluations of top economists of every […]
You probably know someone who would like help understanding how to get approved. Or how to get better mortgage knowledge and a better rate, maybe the best interest rate for a mortgage. Or help understanding the reverse mortgage process. News commentary and helpful discussions can be found in the News/Commentary articles. Browse articles individually or by category of interest. Feel […]
What is a QM Loan? If you’ve read our prior posts or read in more detail Winning Mortgage, Winning Home, a Qualifying Mortgage is one which has to meet a number of tests concerning underwriting, pricing and Ability to Repay (ATR). Why is this important? Lenders prefer to write QM loans because they are easy to sell and they provide […]
The Federal Reserve has propped up markets over the last decade and especially over the last 3 years. It bought $5 trillion of loans in the last two years, more than he prior 23 years combined.. Now the great Fed Unwind is upon us. It’s buying has been a pillar supporting recent jumps in inflation to multi-decade highs. It doesn’t […]
Who hasn’t gone to the Zillow website to look at a house value estimate or to pretend your house is worth what they say or more? Zillow put all that data to use buying homes. When web surfers searched more frequently about a particular submarket, Zillow’s AI concentrated bidding for houses there. The computer algorithms created a ”Zillow Effect” where […]
Is it possible that a foreclosure crisis is brewing? In prior posts we noted that forbearance was extended to June 30, 2021. Reports showed that more than 5% of mortgages remained in forbearance after a year. That number recently fell to about 2.5 million still in forbearance as workouts and exits progressed. New entrants into forbearance declined significantly in late […]
In the current market, sellers generally avoid choosing buyers using FHA and VA loans. Sellers’ agents influence this decision where sellers have a choice with offers from more than one buyer. Why do sellers avoid FHA and VA buyers? What are the FHA and VA loan impediments? FHA and VA act only as guarantors of loans. These entities do not […]
If you’ve never read a Dilbert comic strip, Scott Adams enjoys skewering hype, bosses, and corporate bureaucracy. Here is a strip from early in his career (1989). Many readers of this site follow home prices and related information. Apparently 1989 is as relevant as 2021. While a little off topic for Winning Mortgage, things change and things stay the same. […]
The proposed first time home buyer tax credit was introduced in Congress along with additional housing related bills. But, these may create problems in housing market and drive up prices, affecting buyers across the board. Industry groups who want to sell more houses have concerns that it will make homes less affordable for the low to moderate income buyer is […]
On August 13, the university of Michigan released its latest survey on consumer sentiment. Contrary to expectation of a steady reading, the measure of consumer sentiment plunged to its lowest level in a decade. In fact, the drop was extreme on a monthly basis. Only two times in the last 50 years has the drop of any similar magnitude from […]
Nearly 3 months ago, we provided discussion of a likely advantageous purchase window which addressed home prices, home availability, the mortgage market and the factors driving home prices. As additional support for moderation in the home price increases, April has reinforced the materials price factors raising prices for home builders and either hurting builders’ profits or pushing new home prices […]
So you thought you were looking at all the houses available in your price range and where you want to buy? Pocket listings by real estate agents prove you wrong. These have been around for years. Also called whisper listings today, this unethical practice persists among many real estate agents. Buyers frequently speak to many real estate agents and provide […]
Fannie Mae and Freddie Mac control the residential mortgage market as the two largest buyers of mortgages in the US. Each holds a portfolio of more than $2 trillion and buys around $50 billion more every month. Both effectively went bankrupt in 2008 in the prior housing crisis. Because they operated as GSEs (Government Sponsored Enterprises), Fannie Mae and Freddie […]
How much of a problem is the renter free rider problem? If you’ve never heard of the free rider problem, it affects many aspects of pricing issues and partially derives from many government actions. Forbearance partially falls within the free rider definition, but for the most part the end game separates it from a true free rider problem. Forbearance end […]
Many thought processing times for loans in 2020 were slow. Lenders were caught unprepared for the tidal wave of refinance applications driven by a plunge in interest rates. Many lenders couldn’t find enough people to process and underwrite loans. A significant number of individuals changed jobs and entered the mortgage world for the first time. The hot market lured new […]
Reverse mortgages have become more popular in the last decade. Are you looking at a reverse mortgage? As the statistics and performance of a large number of reverse mortgage come in, they have become more acceptable. A greater number of lenders and loan officers have become familiar with them and now originate them. FHA continues to be the dominant force […]
New Fannie Mae and Freddie Mac restrictions are already affecting lenders. The Mortgage Bankers Association special bulletin noted that FNMA and FHLMC have begun to implement the investor/2nd home caps. The MBA has seen the market for these loans deteriorate significantly. Investors have raised rate penalties by imposing loan level price adjustments. These adjustments seek to avoid getting an excessive volume […]
New Fannie Mae and Freddie Mac rules on lending are here and go into effect soon. These may have a sweeping impact limiting loans or driving up interest rates. Your lender may not be able to honor a pre-approval letter even if you would otherwise qualify for the financing. It may impact the ability to close a loan at the […]
The end of forbearance may be panicking borrowers. In a just released report, the Consumer Finance Protection Bureau (CFPB) noted that March 2021 had the most complaints since April 2018. Those complaints overwhelmingly focus on mentions of forbearance and related terms. The number of mortgage borrowers who reported struggling to make payments also rose. CFPB has been issuing conflicting information […]
Facing Default or in Default? There are many circumstances which cause a borrower to go into default or face the prospect of default. Our prior post on Disaster Declarations covered one such event. But more common reasons for default exist. As one would expect, job loss plays a substantial role in many defaults. Divorce and death also play primary roles […]
Is there an unhealthy housing market brewing? The National Association of Realtors (NAR) reported March’s existing-home sales at 6.01 million. Comparisons to March 2020 may not be valid due to the start of Covid, but the year-over-year growth reflected an increase of 12.3%. This is unusually high and likely an outlier, but is consistent with the interest rate driven buying. Ongoing […]
A prior post regarding the most significant credit events included foreclosures, pre-foreclosures, deed-in-lieu, and bankruptcies as negative credit flags. These significant credit events keep the primary mortgage buyers (Fannie Mae and Freddie Mac) from purchasing a mortgage loan from an affected borrower. These events also preclude guarantees by federal agencies (FHA, VA, USDA). Private entities likely follow the timelines from […]
Do your property taxes equal your loan payment for principal and interest? Do they exceed the loan payment? That’s question wasn’t even on the radar earlier. One of the major considerations in buying the right house is the total monthly payment. Obviously a buyer is looking for the right house – architecture, location, number of bedrooms, yard or not, and […]
Estimates of the number of mortgage borrowers who entered forbearance at some point over the last year range as high as 11 million. Some borrowers used it as a precaution, others had little other choice. Because there were differing reasons for entering forbearance and differing circumstances, many borrowers were able to exit forbearance. The exit would likely be from a […]
With the extension of forbearance noted in Q1 2021, forbearance time lines for borrowers to exit are all over the map. To qualify for forbearance, borrowers were required to request forbearance and start prior to March 1, 2021. Initial borrowers may have entered in April 2020. The forbearance periods allowed for FEDERAL mortgages is 12 months. However, two additional 3 […]
Home Owner’s Associations and Condominium Associations can rack up big assessments against an owner’s property. Can you stop paying these if you have trouble affording them? There are substantial differences between Home Owner’s Associations and Condominium Associations. In general, a Condominium Association has a substantial duty to maintain a variety of insurance coverages for common areas (walls, roofs, physical structures, […]
Chances are a buyer knows nothing about the potential flood risk on the home the buyer fell in love with and the one on which an offer has been made. Some real estate agents’ websites may provide a note as to the flood zone for listed properties, but is it accurate? What does the letter for the flood zone mean? […]
Many stories in the news recently credit a spike in home sales and home sale prices to the pandemic. The theme consistently refers to Work From Home job moves from high cost locations to suburban or remote locations. Clearly, moving from high cost, high density housing or rentals to a larger home provides more space. A more relaxed location with […]
2008 created a significant crisis in housing, bond markets, employment, and interest rates. Unemployment presents a significant problem. Interest rates are rising, but only for longer term loans such as mortgages. In a replay of 2008, short term interest rates (US treasuries with a term of 3 months, 6 months or 1 year) are actually at historic lows! March 22, […]
Would you like to know when an advantageous mortgage window opens? Did you miss the historic low rates at the end of 2020 and into early 2021? It benefited well those who were re-financing. But many new buyers paid premium prices or bid up prices to buy a home. Get prepared for the upcoming advantageous window! Now may be the […]
Since the beginning of 2020, building material costs have skyrocketed and driven up the cost to build new homes and apartments. The increase caused builders to increase new home sale prices. As a result, new home prices were bid higher and this spilled over to higher price bidding on existing homes. What happens when the market stabilizes? For example, lumber […]
FNMA and FHLMC limited the amount of loans for second homes and investment properties. Announced on March 10, these limits kick in quickly.
For many borrowers, there is a lack of knowledge when to use FHA or conventional loans. Often the lender decides for the borrower at the time of application. The lender might decide to put a borrower in the program generating the highest commission. It may or may not go well; the borrower may be in the wrong loan program. Or […]
Zillow surfing has become a past time during the pandemic. Many buyers have been making offers based on Zillow estimates. Does this sound like a bad idea? Zillow thought its numbers were Gospel and began buying homes for itself. That created a loss for Zillow of about $1 billion in about a year. Probably a good indicator how much trust […]
UPDATE: The CFPB in April 2021 rescinded consumer friendly rules put in place for Covid 19 and during a shortage of appraisers. There is a real risk of appraisal delays killing deal financing, delaying deals, or causing thousands in extra costs for borrowers. In our prior post on FOMO, we covered just what FOMO is and how it might be […]
Rent control has been used in a number of cities by politicians claiming to want to provide affordable housing to those who cannot afford to buy. The question of good or bad policy rests on where you fall — in or out of a rent controlled apartment. Those whose rent is capped experience a lower overall cost to rent over […]
Consumers continue paying higher prices every day as the Biden administration’s spending continues to flood money into the US. First, home prices spiked, then rents spiked. For those facing difficulty paying a mortgage or rent, next comes inflation in the rest of the items. Insurance, utility bills, food, gasoline, and even household items like detergent have increases in prices pushed […]
A ruling on June 23 by the United States Supreme Court crushes FNMA and FHLMC. (see Collins vs Yellen). FNMA and FHLMC both effectively went broke at the beginning of the housing crisis with no liquidity and no capital. As government sponsored enterprises (GSEs) with the ability to call on the US Treasury, they were placed in conservatorship. Conservatorship provides […]
Whether you’ve bought a house, re-financed or borrowed money, rates reflect historic lows. Credit card rates haven’t seen any help though. The Fed is keeping rates (artificially) low for borrowers. Have deposits also? Don’t count on earning any interest. Soon you may have to pay to keep your money at a bank like many countries in Europe and Asia. As […]
At the end of 2020, mortgage delinquencies and the mortgage delinquency rate fell from the 3rd quarter of 2020. It’s still well above a year ago. What types of mortgages are performing best and which are the most delinquent?
The current supply of housing for sale is at one of the lowest points in recent history. Some estimates put it in a 1-2 month range instead of a typical 6 months. In prior posts, we’ve discussed the record high prices of lumber due to shortages having an effect to delay new homes. However, there have been other spikes in […]
DTI has been a component of mortgage underwriting and loan underwriting for decades. The general rule was 28/36 for a long time. If you are unfamiliar with DTI, pick up a copy of Winning Mortgage, Winning Home; you should not be applying for a mortgage without understanding these numbers and what they mean for you. Politicians pushed to raise these […]
2020 was a big year for mortgage loans. Interest rates fell and millions re-financed or purchased a new home. For the vast majority of borrowers, they looked at the rate and took it. Could they have done better on the rate or did they overpay? Winning Mortgage, Winning Home is designed to prepare borrowers for getting a better rate. Let’s […]
What is the housing market status at present? The news contains story after story on the housing market and home prices. Like any good story, media hypes it over and over and over as if every story was Armageddon. Does the hype paint a true picture of the market or does it panic the crowd into FOMO without reason? Home […]
Thank you for the 10s of thousands of page views, all the book purchases and the positive comments/feedback from following the book. Congratulations to everyone who saved thousands on the mortgage and planned well with our book. To close out the year, Winning Mortgage, Winning Home is discounted for Christmas and the holidays! Go to Amazon with your recipient’s email […]
Investor’s Business Daily (IBD) has a long term track record of forecasting and analyzing markets, the economy and consumer attitudes. Following is an excerpt and distillation from IBD’s recent September poll data. The complete IBD/TIPP Economic Optimism Index most recent report can be found by clicking on the hyperlink. The recent September report provides an insight into recession, inflation and […]
What’s the latest information on forbearance help?
The Federal Reserve has telegraphed it wants to rein in its continuing massive asset purchases. It may begin in 2022 or perhaps as early as November 2021. Note that doesn’t mean unwinding the $8.5 trillion of money it has pumped into the economy. This $8.5 trillion propped up and inflated asset prices of everything over the past decade. The list […]
Which agency fiefdom will expand the most? Is a fight over territory and fiefdoms in the making at CFPB vs FHFA? Government bureaucrats often seek to expand their reach as much as they can slip through in new regulations. Is the new FHFA Refi program for lower income borrowers at odds with CFPB’s new push for QM/ATR? The Consumer Finance […]
Adjustable rate mortgages (ARMs) move up and down in popularity depending on the level of interest rates. Many choose an ARM such as a 7 year or a 5 year because they don’t expect to be in a home for a long period. These two loans have a period where the interest rate is fixed (7 years or 5 years, […]