Author Archive
Reverse Purchase Mortgage
Posted by: | CommentsThis program allows a borrower to get a mortgage without any income or credit requirements.
Minimum Age – 62
Maximum Age – None
Maximum Loan- Determined by the borrowers age and property value. Generally the borrower will need between 25% – 35% down plus closing costs of approximately $10,000- $12,000. Generally the maximum loan amount will be $485,000.
Income Requirements- None
Credit Requirements- None.
Time- 60 day closing.
Primary Residence Only.
Buyers may remain in the property until both spouses pass away. (Providing the taxes and insurance has been paid on time.)
Buyers can sell the house at any time and receive all proceeds after paying off the loan.
Heirs can sell the house and receive all proceeds after paying off the loan.
Heirs are not liable for the loan. But must pay off loan in order to receive any proceeds.
Loan Balance is increasing, not decreasing because they are not making any payments.
Housing More Affordable Than Anytime In Past 35 Years
Posted by: | CommentsBuyers in today’s market can expect to pay about 17 percent of their gross monthly income on their mortgage. The average, since 1975, has been 25 percent and at times, such as the early 1980s, mortgage payments were as much as 45 percent of gross income. Zillow.com calculated housing affordability using data dating back to 1975. Based on median household income, median home value, the average 30-year fixed-rate mortgage, and an assumed 20 percent down payment, their research determined that homes are more affordable now than they’ve been at any point in the past 35 years. Read More→
What a week……..
Posted by: | CommentsThis blog is intended for the purposes of promoting discussion and dialog relating to the mortgage industry and how it affects potential borrowers.
Current Mortgage News 3/10/11
What a week……..
The Libyan crisis, Worsening employment news and now the Japanese Tsunami all contributed to large swings in the bond market the past week. The end result…. Not much change in mortgage rates. They are still hovering in the high 4’s to low 5’s.
With rates low and inventory starting to stabilize, this may be the last chance to get a good deal on a new home. The shore market continues to remain strong with prices holding better than most areas of the country.
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Gary Freedman has been in the Mortgage and Real Estate Industries for over 20 years. He has directly originated or managed the originations of over $700 Million in mortgage loans. He completed the prestigious B.F Saul Mortgage Company management training program in nine months. This training included working as an Underwriter, Appraiser, Processor and Closer. This training gives Gary the unique ability to understand the process from start to finish which allows his clients to experience a remarkably smooth loan process. Gary served as President of Granite Mortgage Corporation and Millennium.
Title Insurance Company from 1994-2000. He currently holds his Mortgage Brokers License in the states of New Jersey and Pennsylvania under License Number NMLS ID #146492. He has held the Real Estate Broker’s license in the state of Pennsylvania.
To reach Gary Freedman please e-mail him at gary.freedman@tridentmortgage.com or via phone 609-487-7202.
The opinions and views expressed here are solely those of Gary Freedman and do not represent those of Trident Mortgage or any of its affiliates, officers, members or employees. Gary Freedman is not a CPA, Attorney or Financial Advisor. The information provided is deemed to be generally accurate but should not be relied upon to make any decisions. You should consult your CPA, Attorney or Financial Advisor before acting on any of the information provided herein.
How will the turmoil in the Middle East effect Mortgage Rates?
Posted by: | CommentsThis blog is intended for the purposes of promoting discussion and dialog relating to the mortgage industry and how it affects potential borrowers.
General Information
This big news this week is the turmoil in the Middle East, especially Libya. They export 2% of the world’s oil and all exports have been cut off due to the current events there. This sent oil prices spiking to $120 a barrel before settling back after Saudi Arabia assured the markets it would make up any lost supplies.
The potential disruption of oil caused a flight to quality. This simply means traders started buying more US bonds and other government backed secured instruments. The benefit from this is that put downward pressure on rates pushing mortgage rates back down into the 4.875% range.
The markets continue to remain volatile. With rates still very low at least for now and housing prices at or near the bottom, there is not likely much more time left for home buyers to get any deals.
Stay tuned for future events in the Middle East that could change the market (and interest rates) very quickly.
Gary Freedman has been in the Mortgage and Real Estate Industries for over 20 years. He has directly originated or managed the originations of over $700 Million in mortgage loans. He completed the prestigious B.F Saul Mortgage Company management training program in nine months. This training included working as an Underwriter, Appraiser, Processor and Closer. This training gives Gary the unique ability to understand the process from start to finish which allows his clients to experience a remarkably smooth loan process. Gary served as President of Granite Mortgage Corporation and Millennium.
Title Insurance Company from 1994-2000. He currently holds his Mortgage Brokers License in the states of New Jersey and Pennsylvania under License Number NMLS ID #146492. He has held the Real Estate Broker’s license in the state of Pennsylvania.
To reach Gary Freedman please e-mail him at gary.freedman@tridentmortgage.com or via phone 609-487-7202.
The opinions and views expressed here are solely those of Gary Freedman and do not represent those of Trident Mortgage or any of its affiliates, officers, members or employees. Gary Freedman is not a CPA, Attorney or Financial Advisor. The information provided is deemed to be generally accurate but should not be relied upon to make any decisions. You should consult your CPA, Attorney or Financial Advisor before acting on any of the information provided herein.
Rates are still Low!!
Posted by: | CommentsRates are at all time lows. If you are waiting for rates to go lower you are likely going to miss the boat. It is just a matter of time before rates rise again.
They still continue to be in the 4.75% range, at least for now.
The bond market continues to be very volatile. Read More→
Current Mortgage News 1/13/11
Posted by: | CommentsCurrent Mortgage News 1/13/11
Rates hit 4.25% for a 30 year fixed rate loan with zero points a few weeks back and then went up to 5.25% and finally settled back to around 4.75% toward the end of last week. The moral of the story is, don’t be greedy. Rates are at all time lows. If you are waiting for rates to go lower you are likely going to miss the boat. It is just a matter of time before rates rise again. Read More→
Are Interest Rates going Up or Down?
Posted by: | CommentsThe Fed has made it clear that its intention is to continue to keeps rates low. The Fed has various tools to do so, but the most common is to simply buy large quantities of mortgage backed securities. More demand will increase the cost of bonds. Higher bond prices mean lower rates.
The Federal Reserve recently announced that it will launch a program to buy up to $600 billion in mortgage-backed securities and GSE direct obligations to help buoy the flagging mortgage market. The bond market generally reacts inversely to that of the stock market.
Once the economy starts to pick up steam watch for rates to rise. One of the Fed’s primary goals is to keep inflation in check. Its primary tool for doing so is to increase interest rates.
To reach Gary Freedman please e-mail him at gary.freedman@tridentmortgage.com or via phone 609-487-7202.
The opinions and views expressed here are solely those of Gary Freedman and do not represent those of Trident Mortgage or any of its affiliates, officers, members or employees. Gary Freedman is not a CPA, Attorney or Financial Advisor. The information provided is deemed to be generally accurate but should not be relied upon to make any decisions. You should consult your CPA, Attorney or Financial Advisor before acting on any of the information provided herein.
