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Real Estate - Mortgage

Government Shutdown Brings Mortgage Obstacles

The shutdown effect is obvious if you're a government worker suddenly trying to buy a home with IOU's – but, otherwise, why would your mortgage application be affected? Other loans may require verifying paperwork from the IRS – for example, verification of income – before loan processing can proceed. How To Keep the Home You Already Have Government workers who already own homes have a more fundamental cash flow problem. Your lender may also be able to provide a short-term loan at reduced interest rates. It may be making mortgage payments when you're hit with a financial crisis, making unexpected home repairs, or getting into a bidding war to buy your first home. Start by establishing an emergency fund during better times, so you don't have to rely completely on credit to get through a true financial crisis. If you would like to monitor your credit to prevent identity theft and see your credit reports and scores, join MoneyTips. Make all payments on time and keep other debts as low as possible. You'll have to prioritize debt and possibly make only minimal credit card payments while you devote existing cash toward your mortgage. Did we mention the importance of an emergency fund?

To rent or to own? Here’s who pays more

Is it better to rent or to buy? That depends on where you live and whether you think long-term or short-term. In every state across the country, homeowners with a mortgage pay more per month than renters, but the difference is far more drastic in some than others, according to a CNBC report on U.S. Census data from 2013-2017. Renting in New York State is roughly $870 cheaper than buying. The disparity is less drastic in Illinois — owners pay around $681 more per month than renters. Florida owners pay just $355 per month more than renters. The biggest disparity is in New Jersey, where it costs $1,149 per month to own a home than rent. It’s the lowest just an eight hour drive away in West Virginia, where it costs just $316 more to own than rent. West Virginia is also the cheapest overall state to rent and own and is less than half what it costs to rent and own in some of the more expensive states in the country. Today, more than two-thirds of renters plan to keep renewing their leases due to their finances, up from 59 percent just two years ago.

Detroit hits mortgage milestone as housing market gains momentum

For the past decade, it’s been almost impossible for aspiring Detroit homebuyers to get mortgages. But that appears to be changing. The city notched a real estate milestone of sorts last year, recording more than 1,000 new home mortgages in 2018. Its data show that 1,221 homebuyers purchased homes with traditional mortgages last year. The land bank’s Rob Linn says it’s the first time the city has reached more than 1,000 mortgages since the 2008 financial crisis. Subsequent waves of mortgage and tax foreclosures decimated Detroit’s housing market and rendered traditional mortgages almost non-existent, with banks often refusing to lend even to qualified homebuyers. But Linn says there’s been a steady upward trend in new mortgages since 2014, when the city recorded only 490. “In the housing market, success begets more success. “When a resident lives in an area where there are mortgages, it becomes easier for them to get their own.” Linn says another good sign is that mortgage-backed homebuying is spreading to more neighborhoods. Land bank data show that home sales prices are on the rise, too—jumping from around $33,000 in 2014 to more than $74,000 in 2018.

Cost of living: The purchasing power of a dollar in every state

To shed light on these differences that reflect the relative purchasing power of Americans in every state, 24/7 Wall St. calculated the value of a dollar in each using data from the Bureau of Economic Analysis. For example, with Hawaii’s relatively high housing prices, a dollar spent on rent there is worth only 61 cents. States with large shares of residents living in expensive housing within urban areas account for the vast majority of the states where a dollar is worth the least. A dollar is generally worth much more in states, particularly in the South, where a smaller share of residents live in cities. North Carolina More:Economic climate: The best (and worst) states for business 34. South Dakota More:Financial security: Best (and worst) states to grow old in 42. For example, with Hawaii’s relatively high housing prices, a dollar spent on rent there is worth only 61 cents. In states where a dollar is worth less (those with the highest cost of living), many residents have higher incomes. While residents of New Jersey state see only $0.88 in value for each dollar they spend, the annual per capita income there is also almost $20,000 higher, more than enough to offset their lower purchasing power. For this reason, in most states with high resident incomes and steep consumer prices, the people living there can generally afford to fork out more for goods and services than can their counterparts in states with cheaper prices and lower salaries.

Stuck in the rent vs buy dilemma? Consider the local price-to-rent ratio

Price-to-rent answers affordability questions If you’re debating whether to rent or buy, look to your local price-to-rent ratio for guidance. Verify your new rate (Oct 29th, 2018) Where buying a home’s more affordable According to a new analysis from Rentberry, Trenton, New Jersey, boasts the nation’s lowest price-to-rent ratio, making it a slam-dunk for potential home buyers. The median property price in Trenton sits at $149,700, while the average monthly rent is $1,500 per month, making Trenton’s rent-to-price ratio 8. Daniela Andreevska, content director at real estate analytics firm Mash Visor, says anything in the 15 and under range means buying a home is more affordable than renting. “For renters and homebuyers, this means that it is relatively cheaper to buy a property in a certain market rather than to rent there,” Andreevska said. “So, if you have the necessary cash for a down payment and have figured out the rest of your financing in such a market, go ahead and buy a home.” Other cities with low price-to-rent ratios include Toledo, Dayton and Akron, Ohio; Syracuse, New York; Davenport, Iowa; Hartford, Connecticut, Cedar Rapids, Iowa; and Lansing, Michigan. “In most of these locations, the median property price does not exceed $250,000, which is below the level in many other top markets at the moment,” Andreevska said. Home prices in the area average $1.4 million, while the average monthly rent is $2,780. “Some of these cities are infamous for the high real estate prices there, such as San Francisco, New York, El Paso, and Irvine,” Andreevska said. In such expensive markets, it makes sense that renting is the better option or even the only affordable one.” Show Me Today's Rates (Oct 29th, 2018) Get today’s mortgage rates Looking to buy a home in one of the nations low price-to-rent markets?

Affordable Housing Bond Measures Pass in Three States

While most of the national attention in last night’s election coverage focused on prominent personalities in key states, a number of local referendums addressed issues related to housing affordability. Portland voters approved a $652.8 million bond measure to build more affordable housing. Two North Carolina cities also passed bond measures to finance affordable housing. The measure will finance the creation of new low-income housing and the rehabilitation of foreclosed, blighted or dilapidated single-family houses and apartments. Separately, voters in Chapel Hill approved a $10 million bond to build and preserve more than 700 affordable homes and apartments. Paying off the bond could add a penny to the town’s tax rate of 52.80 cents per $100 in property value. In Texas, Austin voters approved a $250 million proposal for affordable housing. “We’re excited for this historic bond to have passed with such an overwhelming margin,” said John Lawler, the Head of the Keep Austin Affordable coalition organized in support of the bond, in an interview with the Austin Statesman. “We see it as a mandate for the city of Austin to invest heavily in affordable housing.” However, one proposition that went down in defeat. Sponsored

Real estate strategy: How to win at real life Monopoly

Here’s how to win at Monopoly in real life by adopting some of its real estate strategy. Considerations for investors with multiple mortgaged properties Mistakes to avoid The leverage you gain with smart mortgaging allows you to control more rentals and acquire wealth. Check mortgage rates for rental property here (Dec 18th, 2018) Monopoly and mortgages The objective of this classic game is to control property and extract rents from your competitors until they run out of money. Some properties are more valuable and desirable than others, and owning a matching group allows you to build homes and hotels and charge much higher rents. Real estate strategy: leverage Monopoly is not just a game. According to Alex Hemani at Forbes.com, leverage in real estate investing works best when property values and rents are increasing. And while most investor property mortgages require at least 20 percent down, getting that 20 percent from your other properties allows you to leverage a lot more. Investment cash-out mortgages in real life There are many ways to extract equity from investment properties. Financing more properties Mortgage lenders require significant cash reserves when financing rental property, and the more properties you have mortgaged, the higher this number may be. Most property investors make their money over time, paying off their mortgages and investing their rental income Many, many wealthy people in the US got there with real estate investing.

What Is Ownership Interest?

The remainder of this post will go over the ways in which owning property or a business can impact your mortgage transaction. Being on the Title to a Home When it comes to mortgage programs for first-time homebuyers, it does actually matter whether you’ve had ownership in a home before. You have an interest if you own 1% or 100% of the property. Owning Your Own Business Another aspect where ownership interest might come into play is if you own your own business. If you have less than 25% ownership, while the documentation necessary can vary by loan type, there are some things to think about. You may provide a statement regarding the extent of your ownership in the business (e.g. It’s also a good idea to have 2 years of tax returns available with your Schedule E, which indicates other income and losses. For this reason, mortgage lenders are very interested to make sure that the condo association is in good shape. In a condo project, single-entity ownership restrictions are as follows: 2 – 4 units: ownership in not more than one unit 5 – 20 units: ownership in not more than two units 20 units or more: ownership can’t exceed 20% – 25% of the project, depending on the investor in your mortgage Ownership interest can play a big role in many areas of a mortgage transaction. But now that you know how it works, perhaps you’re ready to get started on buying or refinancing a home.

Good news and bad news about the real-estate market in 2019

The problem is that the pent-up demand is still expected to continue to exceed supply, even with more homes for sale. NAR predicts that existing home prices will rise 2.5% in 2019, to a median of $265,200, compared with a 4.7% rise in 2018, to $258,700. Mortgage rates will continue rising From the beginning of 2018 to mid-December, 30-year fixed mortgage rates went up a little less than three-quarters of a percentage point, to around 4.75%. Fannie Mae’s forecast is for an increase of just 0.1 percentage point. For example, in NerdWallet’s daily mortgage rate survey, the 30-year fixed-rate mortgage started the year averaging 4.09%. Affordability still a concern As home prices and mortgage rates rise in tandem, home buyers find it harder to afford homes. New homes get smaller From a home buyer’s perspective, most markets need more houses for sale, and they need to be on the affordable end of the price scale. Lending standards ease a little Mortgage lenders learned an enduring lesson in the housing crisis a decade ago: Make sure borrowers can repay their loans. Borrowers choose ARMs because the initial rates on adjustables are lower than the rates on fixed-rate mortgages. In October, 8.2% of mortgages were ARMs, according to Ellie Mae; 12 months earlier, ARMs had a 5.5% share of mortgages.

Homeowners’ typical mortgage payments are rising much faster than home prices

The Many Ways to Be Relieved of Your Timeshare Obligations While it is true that a timeshare contract is a binding legal document, it is often mistakenly thought that such a contract cannot only be cancelled. In fact, most timeshare companies maintain that their contracts are non – cancellable. This misconception is perpetuated by timeshare companies and user groups that are funded, maintained and controlled by the timeshare industry. Straight Up with Jocelyn Predovich: The Truth about FHA 203k Loans The FHA 203k loan program provides home buyers the opportunity to buy and fix up a property, without exhausting their personal savings. Homeowners’ typical mortgage payment is rising much faster than home prices, according to new data from CoreLogic. The US median sale price has risen by just under 6% over the past year, according to CoreLogic. However, the principal-and-interest mortgage payment on a median-priced home has spiked by nearly 15 percent. And the trend looks set to continue – CoreLogic’s Home Price Index Forecast predicts that home prices will rise 4.7% year over year in August 2019. One way to measure the impact of inflation, mortgage rates and home prices on affordability is to use the so-called “typical mortgage rate,” CoreLogic said. While the US median sale price in August was up about 5.7% year over year, the typical mortgage payment was up 14.5% because of a neatly 0.7-percentage-point hike in mortgage rates over the time period, LePage said.

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Housing Affordability Hits Lowest Point In 10 Years

A new report shows housing affordability has now hit a 10-year low. Last quarter, U.S. homes dropped to their least affordable point since 2008. According to the Home Affordability Report from ATTOM Data Solutions, nearly 16% of Americans live in a county where buying a median-priced home requires an annual salary of $100,000 or more. In total, median-priced homes in 344 out of 440 counties were unaffordable last quarter, at least by historical standards. Here are the least affordable U.S. counties to buy a home in, according to the report: Denver County, Colorado Arapahoe County, Colorado Tarrant County, Texas Kent County, Michigan Jefferson County, Colorado And here are the most affordable: Bristol County, Massachusetts Suffolk County, New York Camden County, New Jersey Lake County, Illinois Jefferson County, Alabama To make matters worse, home price appreciation outpaced income growth in 86 percent of counties analyzed. The worst offenders were Los Angeles County, California; Cook County, Illinois; Harris County, Texas; Maricopa County, Arizona; and Miami-Dade County, Florida. Here’s where average wage earners need to spend the most to buy a house: Kings County, New York (134% of income needed) Marin County, California (126%) Santa Cruz County, California (120%) San Luis Obispo, California (100.5%) Maui County, Hawaii (99.8%) Here’s where average wage earners need to spend the least: Clayton County, Georgia (15.6%) Wayne County, Michigan (15.8%) Allen County, Ohio (16.2%) Saint Lawrence County, New York (16.9%) Rock Island County, Illinois (18.7%) Daren Blomquist, ATTOM’s senior vice president, attributes the drop in affordability to rising mortgage rates. Census net migration data shows negative net migration in more than two-thirds of those highest-priced markets,” he said. “More than three-quarters of markets requiring annual income less than $100,000 to buy a home posted positive net migration, indicating that home affordability is at least one factor driving recent migration patterns.”