NSH Mortgage Reports

 

3 Factors To Consider With Housing Affordability Still Being High, Yet The Home Prices Are Still Increasing

3 Factors To Consider With Housing Affordability Still Being High, Yet For Home Buying The Prices Are Still Increasing   Incomes, Interest Rates Have Kept Affordability In Check Despite rising home prices, American housing is actually reasonably affordable. Three factors to consider with housing affordability still being high, yet for home buying the prices are still increasing. NSH Mortgage has the knowledge and tools to help you in finding out your housing affordability opportunities and with the rise in home prices. According to the recent Real House Price Index from First American, today’s home buyers currently possess a historically high level of house purchasing power.   Affordability Crisis Has Been Overstated Talk of an affordability crisis is over stated. In fact, consumer home buying power, the how much someone can buy based on average income, interest rate and home price, is actually up over the year. Home buying power has risen by nearly a full percent from November 2016 to November 2017. In addition, even though real home prices increased only by 5% over the year, they are still 37.7% below their 2006 yearly peak. While they are also more than 16% below their 2000s yearly numbers. Furthermore, with incomes increasing rapidly, yet they are not able to keep pace with the rising home prices. Forgotten to factor in the comparison of income growth and unadjusted home price growth is the change in household income. Which is not the only factor that influences how much home one can actually afford to buy. A consumer’s home buying power which is result of how much one can afford to buy, including by the changes in mortgage interest rates. Even if one’s income does not change, but interest rates go down home buying power increases. Additionally, because mortgage rates have decline since their historical averages, home buying power is up. In fact, consumer home buying power has increased by 2.3 times higher than it was in the year 2000. It is also only 2.9% below the peak in July 2016. Thanks to the long run trend in mortgage interest rates going downwards from a peak of 18% in 1981. The housing market has benefited from consistently increasing home buying power. Home buyers today have been seen with historically high levels of home purchasing power. Actually, that is one important reason why, even as unadjusted home price growth has exceeded household income growth. Which starts the talk…

5 Important Reasons Why First-Time Home Buyer Have Been Buying Homes Recently

5 Important Reasons Why First-Time Buyers Have Been Buying More Homes Lately   First-time Buyers Rise To The Occasion Ask any first-time home buyer about their home search, and you will probably hear that the quest is not easy. It is tough saving up for a home. Five important reasons why first-time buyers have been buying homes recently. NSH Mortgage has the knowledge and tools to help you out with the recent changes in today’s housing market with first-time buyers looking for a good home. Landing a mortgage at the desired rate can be tricky. Moreover, beating out contenders to the right home requires good timing. Indeed, fresh numbers show that first-timers are not giving up. In fact, they are buying more homes than they have in 12 years which is a good sign for the market. Alternatively, it may encourage others to pursue their dreams of owning. If you are eager to buy your first home, the good and bad news is that you are not alone. But with careful planning and the right approach, you will stand a better chance of buying your first home sooner.   What The Research Found A new report by Genworth Mortgage Insurance had some big findings about first-time home buyers: With over 2 million new or resale homes bought in 2017. That is a 7% increase over 2016. It also makes 2017 the strongest year for the first-time buyer market since 2006. Notably, they have been buying more than half a million single family homes last quarter. That makes it the best fourth quarter for first-timers since 2006. For one thing, they bought 39% of all single family homes sold. They consider 55% of all purchase mortgages have been able to support the last quarter. In particular, they have financed nearly 400,000 homes using low down payment mortgages last quarter. That makes it the strongest fourth quarter for low down payment loans since 2000. First-time home-buyers guide.   Why This Data Matters In fact, it has been noted that there has been a 40% growth among first-time buyer purchases since 2014. It accounts for over 80% of the growth in home sales since 2014. That has had a big impact on the housing market. Today, they believe the housing market is more mature than it was three years ago. Between 2007 and 2015, the annual number of first-time buyers has been below 1.8 million. But in…

4 Important Updates On Mortgage Rates For March 2018

4 Important Updates On Mortgage Rates For March 2018   What Is Driving Current Mortgage Rates For March Mortgage rates for March fell dramatically in a turbulent market. Four important updates on mortgage rates for March 2018. NSH Mortgage has the knowledge and tools to help you understand how to stay on top of your mortgage rates in March 2018. This morning, we got several moderate to important reports to digest, and their results present a mixed bag where mortgage rates are concerned. In addition, market participants are anxiously waiting Fed Chair Jerome Powell’s testimony before Congress today. Yet he has previously expressed the need to take inflation preventing action, higher rates and that has investors concerned. Weekly unemployment claims, moderate importance, came in lower than expected, with 210,000 instead of the anticipated 226,000. That is bad for mortgage rates, because it indicates that the labor economy was stronger than analysts thought, and that can put upward pressure on wages, inflation. Next, we have a trio: personal income which are of major importance, consumer spending which are of major importance, the core inflation rate which are of major importance. Personal income was also unfavorable for mortgage rates, increasing by .4% when experts predicted .3%. However, consumers are not spending their gains, consumer spending increased .2% instead of the expected .3%. That is good for rates, because less spending tens to keep prices lower. The core inflation came in as expected, neutral for mortgage rates, at .3%. ISM manufacturing index, moderate importance, which measures economic activity at the manufacturing level came in higher than expected at 60.8, indicating that US manufacturing has expanded faster than any time since 2004. That signifies economic heat and is bad for mortgage rates.   Mortgage Rates Today   Financial Data That Affect Today’s Mortgage Rates Today’s early data, on the whole, are favorable for mortgage rates. Major stock indexes are down across the board this morning, good for rates, because rising stocks typically take interest rates with them, making it more expensive to borrow. Gold prices fell for the third straight day, this time by $11 an ounce to $1,309. That is bad for mortgage rates. In general, it is better for rates when gold rises, and worse when gold falls. Gold tends to rise when investors worry about the economy. In addition, these worried investors tend to push rates lower. Oil fell for the second straight day by…

6 Important Benefits From FHA’s 203k Streamline & Standard Loans

6 Important Benefits From FHA’s 203k Streamline & Standard Loans   FHA 203k Streamline & Standard Loans There are two types of 203k loans the streamline and the standard. Which one you choose depends on the extent of the repair work. Six important benefits from FHA’s 203k streamline and standard loans. NSH Mortgage has the knowledge and tools that can help you discover the differences between FHA 203k streamline and standard loan works and how they can potentially help you with your finances with a FHA loan. So why choose the streamline 203k option? Because more lenders offer it than the full 203k. In addition, it is a much simpler process than the standard option. A FHA 203k loan is a little different from a regular loan, because you will be submitting your list of improvements, and the loan does not completely fund until the improvements are complete.   203k Streamline This option allows you to do relatively minor repair work. Things like kitchens and bathrooms. The stated limit to costs is $35,000. However, a FHA 203k loan requires a buffer equal to 15% of the total bids. This buffer is called a contingency. It is a temporary fund to cover cost overruns by your contractor. If the contingency fund is not used, it is credited back to you. So, your real maximum repair job can cost around $31,000. Most non-structural, non-luxury items are acceptable: Kitchen, and bathroom remodels. Appliance replacement. Carpet and flooring. Roof replacement. Painting. Repairing safety and health issues. Energy efficient improvements. In addition, to much more. In short, you cannot do anything structural or change the footprint of the home. So why choose the streamline 203k option? Because more lenders offer it than the full 203k. In addition, it is a much simpler process than the standard option.   203k Standard With this option, you can do just about anything you want to the home, except non-permanent changes or adding luxury amenities. Structural alterations. Convert an one family home into a two, three, or four unit home, or vice versa. Connect to public sewer or water. Some larger landscaping projects. Improve accessibility for disabled persons. Move the house to a different site.   What You Cannot Do With The Loan Minor landscaping. Add a luxury amenity like a tennis court, barbecue area, or swimming pool. Projects that can take longer than six months.   203k Loan Rates…

5 Important Steps On How A FHA 203k Loan Works

5 Important Steps On How A FHA 203k Loan Works For You   So You Want To Buy A Fixer Upper Buying a home that needs some tender love and care can be a good choice. Five important steps on how a FHA 203k loan works. NSH Mortgage has the knowledge and tools that can help you discover how a FHA 203k loan works and on how it can potentially help you on your finances with your FHA loan. Imperfect homes come with less competition from other buyers, and you can build tens of thousands of dollars in additional equity in a short time by making relatively minor improvements. But there is a reason not as many people want to buy a fixer. It does take more work, planning, and time compared to buying your standard turn key home.   What Is A FHA 203k Loan A FHA 203k loan, sometimes called a Rehab Loan or FHA Construction loan. Which allows you to finance not one, but two major items: the house itself and the needed or wanted repairs. Because the lender tracks and verifies repairs, it is willing to approve a loan on a home it would not otherwise consider. The loan addresses a common problem when buying a fixer home: lenders often do not approve loans for homes in need of major repairs. A home must meet certain safety and livability standards. Some home buyers are handy enough to buy the house and fix it up themselves. But, if the home is too run down, you cannot get a loan in the first place. The 203k lets you buy and fix up a house in one transaction, allowing the lender to approve the loan despite its initial condition.   Here Are The Steps On How It Works The process is like that of regular home buying, with some modifications: Apply → Get Approved → Find A Contractor → Get Bids → Close the loan → Complete Repairs → Move in Receiving a final approval involves lining up contractors and receiving bids, and some additional hoops to jump through. Do not get stressed at this process, though. The 203k lender will drive the process and guide you through. You are not on your own! 1. Choose your projects: The first step is deciding which repairs you want to do. The lenders will request any safety or health hazards to be…

6 Updated Factors On VA Loans Rates & Requirements During 2018

6 Updated Factors On VA Loans Rates & Requirements During 2018   VA Loans: No Mortgage Insurance Required Looking for a 100% loan, the VA loan may be your answer. Six updated factors on VA loans rates and requirements during 2018. NSH Mortgage has the knowledge and tools that can help you stay current on the potential savings that VA loans can bring you with its no private mortgage insurance required. Many VA borrowers say that buying a home with no money down is the VA program’s biggest advantage. But there are other characteristics of a VA mortgage that provides huge benefits as well, especially compared to other available financing options. With VA loans, closing costs are often lower, there is less stringent underwriting, and mortgage rates are extremely competitive. VA mortgage rates are typically 0.375 percentage points below conforming mortgage rates and are lower than comparable FHA mortgage rates, too. Another big advantage of VA loans that are often overlooked is the absence of a monthly mortgage insurance payment.   Mortgage Insurance Basics, By Loan Type Mortgage insurance typically comes into play when borrowers have a loan to value of 80% or higher. This form of insurance gives lenders the confidence and flexibility to lend to buyers with less skin in the game. Borrowers can pay the premium and in return are able to put less down. The premiums can be one time charges, paid monthly or both in the instance of FHA and USDA loans.   Conventional Mortgage Insurance Conventional loans require a minimum 3% down payment. Consumers unable to put down at least 20% will usually have to contend with private mortgage insurance (PMI). PMI rates on conventional loans will vary depending on several factors, like your credit score, your down payment, the loan amount and others. Conventional PMI is typically anywhere from 0.5% to 1% of the loan amount and paid as part of your monthly mortgage payment. For example, on a $200,000 loan, that is anywhere from $1,000 to $2,000 in annual PMI costs. Given that range, you could be adding anywhere from $83 to $167 to your mortgage payment each month. Conventional borrowers typically pay PMI until they establish their loan to value ratio reaches 80%.   FHA Mortgage Insurance FHA loans require a minimum 3.5% down payment and the program collects both an upfront mortgage insurance premium as well as an annual premium. The…

6 Important Facts You Need To Know About FHA Loan Requirements

6 Important Facts You Need To Know About FHA Loan Requirements   FHA Loan Requirements First-time home buyers and repeat home buyers can use the program to purchase almost any type of residence since they meet FHA loan requirements. Six important facts you need to know about FHA loan requirements. NSH Mortgage has the knowledge and tools that can help you with keeping up to date on your FHA loan requirements and assist you in making the right decisions. Those include a minimum credit score of 500 with 10% down, and 580 for loans with 3.5% down. The property must be your primary home, no vacation cabins or rentals. However, you can buy a multi-unit property, like a duplex, since you live in one of the units.   FHA Loan Guidelines Versus Conventional Guidelines Conventional means a mortgage that is not backed by the government. You can buy a house without putting 20% down, even if your credit’s not perfect, and there are both private loans and government backed options to fit the bill. However, conventional loans tend to have more restrictive guidelines. Low to no down payment loans are readily available from U.S. lenders, and borrowers can be approved with even below average credit scores. The FHA loan is one of the most popular low down payment mortgages among borrowers with less than perfect credit. The Federal Housing Administration backs the program and makes it available through nearly every mortgage lender in the country. If you want to use FHA financing, you apply with a mortgage lender, broker or bank, just like you would for any other loan type. For years, the FHA has advertised its products as loans for consumers on the margins of home-ownership; those with less than perfect credit scores, with elevated debt to income ratios, or with a lack of credit history. This does not mean that the FHA program is limited to first-time home buyers, though, or to people who otherwise cannot get financed. The FHA program has evolved since its 1934 inception. Today, FHA loans are among the most flexible and rewarding home loan products available to U.S. buyers.   Six FHA Mortgage Facts You Might Not Know   Fact 1: The FHA Is Not A Mortgage Lender The FHA is not a mortgage lender. It is a mortgage insurer. The acronym FHA stands for Federal Housing Administration, a government agency within the U.S….

8 Important Steps To Avoid Scammers For VA Refinance During 2018

8 Important Steps To Avoid Scammers For VA Refinance During 2018   Beware! Scammers Operating Are you considering a VA refinance in 2018? Then take care. Eight important steps to avoid scammers for VA refinance during 2018. NSH Mortgage has the knowledge and tools that can help you with avoiding fraudulent scammers and help make the right choices on your VA refinance loan. Unscrupulous con artists are targeting veterans and service members who want to refinance; some with VA loans have suffered real losses.   A Real Issue There is a bipartisan initiative in the U.S. Senate. No, really! There is an issue so bad legislators are reaching across the aisle in an attempt to resolve it. And, in today’s confrontational atmosphere on Capitol Hill, you know that issue must be serious. A guide to VA home loans and how you can make the most from it. The proposed measure seeks to protect veterans from targeted predatory home loan practices, according to a Congressional website.   Protecting Veterans So, on January 11, U.S. Senators Thom Tillis (R-NC) and Elizabeth Warren (D-MA) introduced the Protecting Veterans from Predatory Lending Act of 2018. They had the backing of ten co-sponsors, five Republicans and five Democrats.  Unfortunately, a few bad actors are taking advantage of the VA home loan program as home lenders have begun targeting veterans and service members to generate profit and fees at their expense, often leading to higher loan amounts and putting families in a worse financial position than they started off. Even the mortgage industry trade body is condemning the practice. When the Mortgage Banking Association testified before Congress, it backed stronger policing.   The Scams There are two main scams and both involve churning. That is when lenders encourage those with VA loans to refinance when it provides no or little benefit. This is also known as equity stripping, because it the scammers may suck the equity out of your home, unnoticed by you because you pay nothing out of pocket for your refinance. But churning is intended to line lenders’ pocket, at the expense of borrowers.   Scam 1: The Cash-Out Refinancing When you are short of cash, you may want to dip into some of the equity you have built up in your home. That process is called a cash-out refinancing. Unfortunately, there are some downsides to this. It means you are resetting the clock on…

8 New Updates To Warrantable & Non-Warrantable Condo Mortgage Rules For 2018

8 New Updates To Warrantable & Non-Warrantable Condo Mortgage Rules For 2018   More Mortgages For Condo/Co-op Owners Buying a condo is a lot like purchasing a regular home, but with one big difference, mortgages are tougher to come by. Eight new updates to warrantable and non-warrantable condo mortgage rules for 2018. NSH Mortgage has the knowledge and tools that can help you with finding how much you can save with these new updates to the warrantable and non-warrantable condo mortgage rules. Lenders impose a different set of rules on you when you buy a condo. They may sometimes increase your interest rate. The most experienced and professional mortgage lenders can help you navigate the condo financing maze. A mortgage lender who is looking out for your best interest can help you beat the system. With condos and co-ops, it is not just your credit worthiness the lender has to worry about. It must also verify the fiscal and physical health of the entire development into which you are buying. Fortunately, with the housing market in recovery and condo values climbing, mortgage lenders allow easier guidelines, even low down payment home loans. Expect condominium and housing cooperative financing opportunities to remain high into 2017.   Conforming Mortgage Rules For Condos Most homebuyers use conforming mortgage financing. This means that their loan purchased by one of two government sponsored entities. Such as, Fannie Mae or Freddie Mac, and that the loan meets the two group’s minimum standards. Fannie Mae and Freddie Mac use the term warrantable to describe condominium projects and properties against which they will allow a mortgage. Condo projects and properties which do not meet Fannie Mae and Freddie Mac warrantability standards are known as non-warrantable. Non-warrantable condos are more challenging to finance. Typically, a condo is considered warrantable if: No single entity owns more than 10% of the units in a project, including the developer. At least 51% of the units are owner occupied. Less than 15% of the units are in arrears with their association dues. The homeowners association (HOA) is not named in any lawsuits. Commercial space accounts for 25 percent or less of the total building square footage. Common non-warrantable properties include condotels, timeshares, fractional ownership properties, and other projects which require owners to join an organization, such as a golf club. Manufactured housing projects and other developments which are not legally considered real estate are…

8 Important Questions On Applying For A FHA Streamline Refinance In 2018

8 Important Questions On Applying For A FHA Streamline Refinance In 2018   Should You Apply For A FHA Streamline Refinance? Here are eight question you need to ask before figuring out if a FHA Streamline Refinance is right for you? Additionally, if your answers are yes to any of these questions, you might be a good candidate for a FHA streamline refinance. Eight important questions on applying for a FHA streamline refinance in 2018. NSH Mortgage has the knowledge and tools that can help you understand the new updates for FHA streamline refinancing and how much you can save while on it. Have you experienced a loss of income since you bought your home? A FHA streamline does not require verification of current income. Do you have less than 20% equity? FHA streamline mortgage insurance may be cheaper than conventional PMI. Is your current FHA mortgage rate higher than today’s rates? You might save considerable money each month with a FHA streamline. Have you had your FHA loan at least six months? There is a six payment waiting period before you are eligible for a FHA streamline. Does your home have zero or negative equity? You do not need to verify your home’s current value. Do you have a FHA loan? FHA streamline refinances are available to homeowners with a FHA loan currently. Is your home a little run down? FHA does not require an appraisal, so repairs are not needed to complete the refinance. Have you made the last three payments on time, with a near perfect payment history for the last 12 months? Just one late payment is allowed to qualify for the FHA streamline. In addition. Your existing loan has to be paid current.   Mortgage Insurance Requirements The FHA Streamline Refinance is a FHA insured mortgage, and FHA borrowers must pay two types of mortgage insurance an upfront payment. Which can be wrapped into the new loan, and an annual payment split into 12 installments, paid with your mortgage each month. If your current loan was endorsed, insured, before June 1, 2009, you qualify for a reduced upfront premium of just 0.10% of the loan amount, or $10 for every $100,000 borrowed. Your monthly mortgage insurance is just 0.55% of the loan amount annually. Most of those refinancing newer loans pay 0.85% per year, and the upfront MIP is 1.75% of the loan amount.   FHA…

1 2 26