Freddie Mac Turning a Corner?

Freddie Mac reported a net income of $676 million during the first quarter of 2011. This was the finance agency's best performance since 2008 when the government stepped in a took it over. The Wall Street Journal reported that Freddie Mac paid $1.6 billion to the US government and did not make any new requests to the US Treasury for additional aid. New mortgage defaults have declined and mortgage modifications have begun to prove to be relatively more successful than initially thought which has helped bolster revenues. WSJ's article also listed positive momentum in the US job market and tightened lending guidelines by Freddie Mac and Fannie Mae as having a positive impacts on the agencies' bottom lines. Ross Kari, Freddie Mac's CFO, was quoted as saying that "we're encouraged by the trends" He later added, "we're not putting up a 'mission accomplished' sign on the front of the building either."

You can read the entire Wall Street Journal article here:
http://online.wsj.com/article/SB10001424052748704322804576303563366140154.html?mod=WSJ_RealEstate_LeftTopNews

Is a FHA Streamline Refinance in Your Future?

Backtrack several years ago and home buyers had no shortage of 100% financing mortgage programs to choose from. In fact, we can remember wholesale lenders rapidly trying to one-up each other with the "best" new no money down financing solution. No credit? No way to verify someone actually had a job? No sweat...here's $300,000. We know where that type of lending (and borrowing) got us. Today, consumers are left with just a handful of low and no money down financing options including FHA loans, VA mortgages, and USDA rural housing loans. Unlike VA financing and USDA mortgages, FHA financing does require that a person hold some equity in a property. In the case of a home purchase, the current down payment requirement is 3.5%. FHA refinance loan-to-value requirements seem to vary by lender.

Back in 2005 and 2006, FHA loans represented less than 2% of the market. Let's face it, what mortgage originators and borrowers were eager to do a more labor intensive FHA loan when they could do a zero down mortgage with "more relaxed" underwriting guidelines. Now that almost all 100% financing options are out the window, FHA loans represent a large chuck of new originations. In 2009, NYTimes.com reported that FHA loan captured 17% of the market.

With mortgage rates recently slipping to 2011 lows, now might be a good time to look into an FHA streamline refinance. If a borrower already has an FHA loan, they may be eligible to refinance with little paperwork, possibly without an appraisal, and some companies may not verify employment or income. Plus, some lenders do not even charge an upfront fee for this type of loan. Meaning it may not cost you anything to refinance (although you need to consider moving backwards in your amortization).

You can check current 30 year and 15 year FHA mortgage rates online at ForTheBestRate.com. For additional information on FHA streamline refinancing, you can check out HUD's web site.

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Spring 2011 Housing Trends from Bankrate.com

Mortgage and insurance research web site, Bankrate.com, recently published an article featuring 5 housing trends for 2011. First, they noted that mortgage rates have had a bumpy ride over the past few months and that recent changes to loan officer compensation, FHA mortgage insurance premiums, and conforming loan limits (coming Oct. 2011) could mean higher rates* and/or more expenses for home buyers.

A huge pool of foreclosures on the market could also have a major impact on the market and make it hard for people to sell their homes while buyers are shopping for bargain basement steals. Bankrate.com recommends that sellers provide an analysis of homes sold in their neighborhoods with foreclosures broken out and, to price homes aggressively if serious about selling.

Another popular trend noted in the article is the growing popularity of adjustable rate mortgages. A Freddie Mac survey found that close to 10% of borrowers will elect an ARM this year. The article also listed cash-in refinances being on the rise. A Cash-in refi occurs when borrowers actually bring money to the closing table in an attempt to avoid private mortgage insurance (PMI) or to quality for a conforming loan or lower their interest rate.

*While many of Bankrate.com's trend predictions may hold true, earlier this month mortgage rates dropped to their lowest levels since December 2010.

You can read their entire article here:
http://www.bankrate.com/finance/mortgages/5-housing-trends-in-spring-2011-1.aspx

Best Places to Retire in 2011

Nearing retirement age and looking for the perfect spot to settle down? TopRetirements.com released their 2011 Best Places to Retire list early this year which was compiled by calculating the 100 communities most visited on their site out of the 625 cities featured (sure, that's one way to do it). Here the list for 2011:

1. Asheville, NC
2. Sarasota, FL
3. Prescott, AZ
4. Ft. Myers, FL
5. Austin, TX
6. Paris, TN
7. Green Valley, AZ
8. Beaufort, SC
9. Venice, FL
10. San Diego, CA
11. Naples, FL
12. Winston-Salem, NC
13. Williamsburg, VA
14. Sedona, AZ
15. San Antonio, TX
16. Vero Beach, FL
17. Tucson, AZ
18. Crossville, TN
19. Charlottesville, VA
20. Phoenix, AZ
21. San Luis Obispo, CA
22. Gainesville, FL
23. Delray Beach, FL
24. Mt. Airy, NC
25. Myrtle Beach, SC
26. Las Cruces, NM
27. Athens, GA
28. Bluffton, SC
29. St. Augustine, FL
30. Chapel Hill, NC
31. Palm Springs, CA
32. Summerville, SC
33. Flagstaff, AZ
34. Santa Fe, NM
35. Boca Raton, FL
36. New Bern, NC
37. Rehoboth Beach, DE
38. Bend, OR
39. Boulder, CO
40. Eugene, OR
41. Beaufort, NC
42. Brevard, NC
43. Ft. Lauderdale, FL
44. Colorado Springs, CO
45. Albuquerque, NM
46. Aiken, SC
47. Winter Park, FL
48. Stuart, FL
49. Key West, FL
50. Santa Barbara, CA
51. Denver, CO
52. Henderson, NV
53. Cheyenne, WY
54. Southport, NC
55. The Woodlands, TX
56. Murray, KY
57. Orlando, FL
58. Chattanooga, TN
59. Tampa, FL
60. Pittsburgh, PA
61. Napa, CA
62. St. Petersburg, FL
63. Cape Coral, FL
64. Clemson, SC
65. Charleston, SC
66. Hendersonville, NC
67. Maryville, TN
68. Ft. Collins, CO
69. Port Charlotte, FL
70. La Jolla, CA
71. Tallahassee, FL
72. Portland, OR
73. Jacksonville, FL
74. Hilton Head, SC
75. Ocala, FL
76. Jupiter, FL
77. Bellingham, WA
78. Lewes, DE
79. Eureka, CA
80. Greenville, NC
81. Chicago, IL
82. Old Saybrook,CT
83. Halifax, CAN
84. Fairhope, AL
85. Knoxville, TN
86. Eufaula, AL
87. Spokane, WA
88. Pensacola, FL
89. New Smyrna Beach, FL
90. Clearwater, FL
91. Bowling Green, KY
92. Fayetteville, AR
93. Portland, ME
94. Corpus Christi, TX
95. Melbourne, FL
96. Walla Walla, WA
97. Mesa, AZ
98. Pinehurst, NC
99. Smyrna, DE
100. Cuenca, Ecuador

You can learn more about these various communities on TopRetirements,com's web site.

CNNMoney.com also put together a similar list of their 25 retirement hotspots (2010) which included:
1. Durham, NC
2. Hanover, NH
3. Lexington, KY
4. Bellingham, WA
5. Prescott, AZ
6. Boise, ID
7. St Petersburg, FL
8. Huntsville, AL
9. Austin, TX
10. Tucson, AZ
11. Ann Arbor, MI
12. Fort Collins, CO
13. Lincoln, NE
14. San Luis Obispo, CA
15. Fayetteville, AR
16. Ashland, OR
17. Ames, IA
18. Beaufort, SC
19. Brunswick, ME
20. Athens, GA
21. Northampton, MA
22. Asheville, NC
23.Duluth, MN
24. Davis, CA
25. Williamsburg, VA

Today's Mortgage Rates (New York Snapshot)

Below if a snapshot of current mortgage rates pulled from a variety of online mortgage rate tables showcasing lenders and brokers serving the State of New York. Please keep in mind that interest rates are subject to change and the various publishers highlighted in the post have different guidelines which the mortgage companies must adhere to. Please visit the pulblishers' web site for details.

30 Year Mortgage Rates Pulled from ForTheBestRate.com (0 pts)
Quicken Loans         4.820% APR, 4.750% Note Rate, $1600 fees
LendingTree Loans  4.837% APR, 4.750% Note Rate, $1995 fees
AIG Bank                 4.595% APR, 4.500% Note Rate, $1200 fees (note w/ .5 pts)

15 Year Mortgage Rates Pulled from CompareInterestRate.com (0 pts)
WCS Lending             3.812% APR, 3.750% Note Rate, $645 fees
Everbank                     3.812% APR, 3.750% Note Rate, $647 fees
Aurora Bank               3.875% APR, 3.750% Note Rate, $1296 fees

5/1 ARM Rates Pulled from BurlingtonMortgage.biz (0 pts)
Quicken Loans             3.460% APR, 3.375% Note Rate, $2121 fees
AIG Bank                     3.799% APR, 3.750% Note Rate, $1200 fees


Mortgage rates are subject to change without notice. You will need to visit the various publishers' web sites in order to review their pricing criteria and then reach out to the individual mortgage companies for personalized quotes. Keep in mind that the mortgage rates only illustrate a "snapshot" or the various rates and closing costs listed on the rate tables. There may very well be better terms available from other competing companies. If you are interested in working with a mortgage bank that has an office in New York State, you may want to check out American Bank Mortgage or use Google's local search results. American Bank has an office in Staten Island that serves the entire state. You can reach them for information on their low and no money down mortgages such as FHA mortgages and VA loans by calling 715-554-4955.

American Financial Resources - FHA Loans Down to 580 Fico Score

NJ based lender, American Financial Resources, recently announced a portfolio FHA loan program down to a 580 credit score on their blog. Previously, the lowest credit score they would consider was 600. In today's market, there are very few lenders out there who are lending to borrowers with sub 620 scores. AFR also offers financing for manufactured homes for consumers with FICO scores as low as 600. Rob Pieklo, VP of American Financial Resources was quoted in a recent blog post stating that "this announcement opens up a new opportunity for many home buyers that previously were not able to obtain financing approvals."

Last week, mortgage rates hit their lowest levels since the end of 2010 and borrowers may want to consider refinancing before rates start to tick back up. Freddie Mac's weekly rate survey showed 30 year fixed rate averages at 4.71% (.7 pts) and 15 year averages at 3.89% (.7 pts). You can use ForTheBestRate.com to check today's mortgage rates online.