The U.S. Department of Housing and Urban Development just announced the January 1, 2009 release date of the “HECM for Purchase” Reverse Mortgage. Under this program you will not be required to purchase your home and then apply for a HECM Refinance, saving seniors thousands in closing costs. The HECM for Purchase will be a great opportunity for senior first time homebuyers and those with poor credit or insufficient income to qualify for a traditional purchase loan. (more…)
The lower a borrowers credit score, the more they will pay for upfront fees and interest rates. Thus, pricing a lot of potential buyers out of the housing market. There is something you can do about this. (more…)
A great graphic from the folks over at Econompic Data that illustrates just how little correlation there is between the Federal Funds Rate and Mortgage Rates. Sometimes, a little eye candy will make the same point it takes us a few hundred words to get across. The Fed cut rates by .5% to 1%. This is the lowest level for the Federal Funds Rate since 2003, and there may be more cuts to come, in case you did not catch the news. (more…)
Though details are precious few, the Wall Street Journal, and others report on a soon to be announced FDIC/Treasury initiative to aid some 3 Million homeowners in danger of losing their homes. From the WSJ: Estimated to cost between $40 billion and $50 billion, the plan would have the government agree to share a portion of any losses on a modified mortgage offered by lenders. Funding for the plan could potentially come out of the $700 billion financial-rescue program authorized by Congress earlier this month. The plan, which was previewed during Congressional testimony last week, would represe (more…)
