Depending on where you live, saving for a down payment can take several years of financial planning. For example, in some markets, it may take the average person nearly a decade to save enough to buy a home. In California, that especially rings true.California is home to four of the five cities on a recent list by SmartAsset of the places where it takes the longest to save for a down payment: San Francisco, Los Angeles, San Jose, and San Diego.Sm
Reverse mortgages for purchases have been around a while but they stand to see more use as younger baby boomers hit retirement age. The mortgages are backed by FHA and they let households buy a home without having to make monthly mortgage payments. Instead, buyers put up a fairly sizable down payment and finance the rest with the reverse mortgage. The monthly payments then come out of the reverse mortgage each month, freeing up money for househol
Following several weeks of decreases, mortgage rates were back on the rise this week."The 10-year Treasury yield increased more than 10 basis points this week,” says Sean Becketti, Freddie Mac’s chief economist. “The 30-year mortgage rate moved up as well to 4.19 percent, a 10 basis point jump. This week marks the first increase in the mortgage rate since December 29. The 2.8 percent decline in existing home sales in December is a reminder
The mortgage industry loves jargon and it can quickly confuse a real estate professional and all the moreso a borrower. The Fannie Mae Sellers Guide alone has 91 different acronyms and abbreviations.The National Mortgage News recently offered up a few of the most common acronyms buyers and professionals should know while going through the homebuying process.DTI: Debt to income Underwriters turn to this ratio to determine if a borrower can financi
Despite a solid gain in mortgage rates last week, home buyers and refinancers were not deterred. Mortgage application volume, which reflects demand for home purchases and refinancings, increased 4 percent last week over the previous week and on a seasonally adjusted basis, the Mortgage Bankers Association reported Wednesday.Last week, mortgage applications for home purchases increased 6 percent compared to the previous week. Purchase applications
Lending giant Wells Fargo is settling charges that it overcharged borrowers for broker’s price opinions. Borrowers who had a mortgage serviced by Wells Fargo between May 6, 2005, and July 1, 2010, may be eligible to receive portions of a $50 million settlement.Wells Fargo was accused of charging certain borrowers between $95 to $125 for BPOs. The typical cost is $50 or less. Borrowers who paid the elevated price for the BPO may be eligible to r
A rate lock helps protect your buyers from fluctuating mortgage rates as they’re getting ready to buy a home. It locks in the interest rate for a loan for a certain period of time until the buyer makes it to closing. Your buyers will know what to expect and won’t then fall mercy to a week of rising rates, for example. However, if rates dip, they could get stuck paying a higher rate too. So it can be a catch-22.Here is when your buyers likely
Home buyers along coastal housing markets are being impacted the most by rising mortgage rates over the past few weeks, according to an analysis by the National Association of REALTORS®.The average 30-year fixed-rate mortgage went up from 3.5 percent in November to about 4.12 percent in January.Home buyers in San Francisco County, Calif., have felt the pain of that jump the most, with nearly a $375 increase to their average monthly mortgage paym
Just hours after being sworn in, President Donald Trump moved to suspend a plan to reduce the Federal Housing Administration’s mortgage insurance premiums that was set to go into effect on Jan. 27. The plan had been announced just a few days ago by the outgoing Obama administration and Housing and Urban Development head Julian Castro.The reduction in premiums by 25 basis points, or a quarter percentage point, “has been suspended indefinitely,
For the third consecutive week, fixed-rate mortgages edged down, lowering borrowing costs for buyers and refinancers.Freddie Mac reports the following national averages with mortgage rates for the week ending Jan. 19: 30-year fixed-rate mortgages: averaged 4.09 percent, with an average 0.5 point, dropping from last week’s 4.12 percent. Last year at this time, 30-year rates averaged 3.81 percent. 15-year fixed-rate mortgages: averaged 3.34 perce
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