Mortgage News
Monday, May 9, 2022
The Fed Takes Action
Thursday, September 30, 2021
Landscaping for Curb Appeal
First impressions go a long way. This is applicable to not only when you meet someone new, but also when somebody sees your house for the first time. Regardless of whether it’s a friend or colleague coming over to visit or a prospective buyer looking at a property you’re trying to sell, the importance of curb appeal shouldn’t be underestimated.
You might think that it takes a lot of work and money to update the curb appeal of your home, but that doesn’t have to be the case. It’s possible to significantly increase the curb appeal of your home and your property just by changing your landscaping. Here are a few ways that your landscaping can change up the look of your property and give your overall curb appeal a significant boost.
Adjusting Existing Landscaping
It doesn’t take a lot to turn around your existing landscaping and dramatically increase your curb appeal. Depending on the state that your trees, shrubs, and other plants are in, it may just be a matter of trimming everything back and taking the time to shape some of the more unruly growth you’ve got going on. Trim down bushes and create a more uniform texture, cut back overgrown limbs, get vining plants under control, and otherwise reign in your existing growth so that it looks much more manicured.
Once you’ve got your current growth under control, consider adding some accents to your landscaping. This can come in the form of colored mulch or gravel beds to add more definition to some of your flowers or plants, fountains or other features to provide a bit of contrast, and possibly even removing a few plants or moving potted plants to a new area to ease up on crowding and create a bit more symmetry in your yard. Even if you don’t make major changes, these little accents and changes can still make a big difference.
New Landscaping Additions
If you want to make bigger changes, consider adding more plants to your yard that will accentuate what you’ve already got there. Put in additional bushes or shrubs of similar types to what you’ve already got on your property to help fill out areas that seem a bit thin in coverage. Add sod to create more uniform ground coverage so that the various clovers, creepers, and other plants don’t distract from the look of your home. Put in some flowering annuals if most of your landscaping contains plants that don’t really flower to add splashes of color to break up all the green. Just look at what you’ve already got and think about how you might improve it.
Of course, it’s important to remember that sometimes a bit of contrast can really help your landscaping as well. Don’t be afraid to add flowers or other plants that don’t seem to go with everything else if you find something that you really want to stand out. If you take the time to come up with a landscaping plan that will be visually striking, it will really get people’s attention the first time they see your home.
Give Your Landscaping a Boost
Depending on what you have in mind, there are a number of ways that you can change up your landscaping through DIY projects. In some cases, though, you may need to bring in a landscaping pro to make more significant changes to your home’s landscaping. Not only will a professional be able to tackle larger projects more quickly, but they may also be able to offer suggestions on the specific shrubs, plants, and other landscaping choices that you add to your property.
source: https://home.homekeepr.com/blog
Beatrice Rauch
Loan Officer - NMLS#390883
Florida State Mortgage Group, Inc.
1512 E Broward Blvd, #204A | Fort Lauderdale, FL 33301
Office: 954-359-3000 - Cell/SMS: 954-410-1960
Florida Licensed Mortgage Lender - NMLS#393326
Wednesday, July 28, 2021
Why Morgan Stanley is convinced the housing market isn’t in a bubble
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Why Morgan Stanley is convinced the housing market isn’t in a bubble
High demand for housing combined with low inventory has heated up the market – boosting property values and leading some to wonder if we’re in bubble territory.
But Morgan Stanley analysts say no.
“We have strong conviction that we are not experiencing a bubble in US housing,” Morgan Stanley strategist Vishwanath Tirupattur wrote in a note to clients this week.
Tirupattur and the Morgan Stanley team admit that the “US housing is on a hot streak,” pointing out that prices have increased 12.2% over the past year based on the S&P Case-Shiller index.
"That amounts to an increase of $35,000 in the median selling price for homes from just a year ago and marks the fastest pace of increase since 2006," Tirupattur wrote.
The hot real estate market and hot stock market may be evoking memories of bubbles for some. Even Treasury Secretary Janet Yellen said this week that interest rates might have to rise from the current near zero level to prevent overheating. And even uttering “2006,” Tirapattur writes, carries a lot of baggage when it comes to housing, as that was the trigger that imploded the economy 15 years ago.
But Tirapattur says it’s not a bubble and not really like 2006 at all, and there’s a good reason to think so based on the data. This time is different, the bank says.
Today’s hot market s based off of one key thing after all – big demand and little supply – which puts the sector on “a sustainably sturdy foundation,” in Morgan Stanley’s view. “We are not at all suggesting that home price appreciation will maintain its current torrid pace. Home prices will continue to rise, but more gradually.”
Two different types of risk
According to Tirapattur, there's a misunderstanding about the cause of the financial crisis, and that it wasn't just about lending to people with low credit scores. "We think it was more about the type of credit they had access to,” he wrote.
There are two types of risk, borrower risk and product risk; borrower risk is based on a consumer’s creditworthiness – using metrics like credit score and debt to income ratio. Product risk, on the other hand, is more about providing mortgages with higher risks of default, "even controlling for those borrower characteristics."
Some of the mortgages that have product risk are ones structured in ways that can make payments vary significantly, like mortgages with introductory periods, teaser rates, and balloon payments – which have a higher risk of default. “Product risk increased significantly more than borrower risk during the pre-GFC housing boom,” the analysts write.
“The affordability products were inherently risky because they effectively required home prices to keep rising and lending standards to remain accommodative so that homeowners could refinance before their monthly payment became unaffordable,” Tirapattur explains. “When home prices stopped climbing, these mortgages reset to payments that borrowers could not make, leading to delinquency and foreclosure. As foreclosures and the subsequent distressed sales piled up, home prices fell further, creating a vicious cycle.”
Back in the lead-up to the Global Financial Crisis, product risk was rising far more than borrower risk, Morgan Stanley analysts say, with affordability products comprising around 40% of the mortgage market between 2004 and 2006. "Today their share is down to 2%,” Tirapattur notes.
On top of that, other metrics like credit requirements and leverage are improved. Before the crisis, the US housing market value was around $26 trillion in 2006 with mortgages equalling around $11 trillion. Today, the mortgage debt is only $1 trillion more and the value of the market has jumped to $33 trillion. For Morgan Stanley, "these changes give us confidence that the current system of housing finance is healthy and on a sustainable footing."
Source:
https://magazine.realtor/daily-news/2021/05/06/this-isn-t-a-bubble
https://finance.yahoo.com/news/why-morgan-stanley-is-convinced-the-housing-market-isnt-in-a-bubble-193156861.html
Posted by:
Betty Rauch – Loan Originator – NMLS #390883
Florida State Mortgage Group, Inc. – NMLS #393326
apply.sflmortgages.com 954.410.1960
Thursday, July 15, 2021
Smart Kitchens, Smart Faucets
Thursday, June 17, 2021
Do you want to jump into the U.S. housing market?
Monday, June 7, 2021
RefiNow and Refi Possible available summer 2021
It’s about to get easier for low-income homeowners to refinance.
Thanks to a new initiative from the Federal Housing Finance Agency (FHFA), certain low-income borrowers will soon be eligible for reduced-cost refinances that guarantee a lower interest rate and monthly payment.
According to the agency, the option will save borrowers anywhere from $100 to $250 per month, on average. That’s a total savings of $1,200 to $3,000 per year.
How RefiNow and Refi Possible work
The new refinance option is dubbed RefiNow by Fannie Mae and Refi Possible by Freddie Mac. It targets lower-income borrowers with conforming mortgages, who could benefit from lower interest rates and payments but haven’t been able to refinance because of the upfront cost.
RefiNow will be available from June 5 for Fannie Mae-backed loans. Refi Possible starts in August 2021 for Freddie Mac-backed loans.
Those who qualify would see their monthly mortgage payment reduced by at least $50 and their interest rate lowered by 50 basis points (0.50%) or more.
Those who qualify would see their monthly payment reduced by at least $50 and their interest rate lowered by 0.50% or more.
For example, if your current interest rate is 3.5% and you qualify for Fannie Mae’s RefiNow program, your new interest rate would be 3.0% or possibly lower.
Some borrowers could also receive a $500 credit to cover the home appraisal. And the adverse market refinance fee — which charges 0.50% on loans of $125,000 or more — may be waived.
With a typical refinance, these types of waivers and guaranteed reductions are not available. Any reductions in rate or payment are directly tied to the borrower’s qualifications — their credit score, debt-to-income ratio, home equity share, and more.
With RefiNow and Refi Possible, low-income homeowners will have a unique chance to refinance with guaranteed savings and reduced upfront costs.
Potential savings for homeowners
The potential savings of the RefiNow and Refi Possible programs could be huge.
According to the FHFA, it should be around $100 to $250 per month on average. But depending on the borrower, it could be larger or smaller, too.
Here’s an example: Say you took out a $200,000 loan at a 5% interest rate in January 2018. The loan came with a $1,073 monthly payment. Since it’s been three years, you’ve paid down your balance slightly, and you currently have about $188,000 left on the loan.
If you qualified for the program, you could refinance into a new, 30-year loan with an interest rate of 4.5%.
That would reduce your monthly payment to $952 per month — a difference of around $120 or, over the course of one year, more than $1,440 saved.
That, of course, doesn’t include the savings from the appraisal waiver ($500) and the adverse market fee.
The adverse market fee charges 50 basis points (0.50%) of all loan balances over $125,000. So for a $188,000 loan, you’d pay $940.
That means refinancing will become much more affordable for homeowners who qualify to have the fee waived.
RefiNow and Refi Possible eligibility
To qualify for the new low-income refinance program, you’ll need to have a loan that’s guaranteed by either Fannie Mae or Freddie Mac.
If you’re not sure whether your loan falls into this category, use Fannie and Freddie’s lookup tools.
Other requirements for RefiNow and Refi Possible include:
- Your income must be at or below 80% of the area’s median income
- You must not have missed any mortgage payments in the last six months and no more than one in that last 12 months
- Your current loan-to-value ratio can be no larger than 97%
- Your debt-to-income ratio can be no higher than 65%
- Your credit score must be 620 or higher
Your home also must be a single-family, one-unit property that you occupy as your primary residence (no investment properties or multi-family homes/duplexes).
Apply.SFLmortgages.comWhen will the new refinance programs be available?
Fannie Mae’s RefiNow program will be available starting June 5, 2021 to homeowners with existing mortgages backed by Fannie Mae.
Freddie Mac’s Refi Possible will be available in August of this year for homeowners whose current mortgages are backed by Freddie.
Not sure whether your home loan is owned by one of these two agencies? You can find out using Fannie Mae’s lookup tool and Freddie Mac’s lookup tool.
Make sure you use both lookup tools if you’re unsure, because either agency may have bought your loan after it closed.
Why is FHFA targeting low-income borrowers?
Refinancing has been hugely popular in the past year, especially with mortgage rates hovering near historic lows. But according to FHFA, lower-income homeowners didn’t have the same opportunities to refinance their homes.
“Last year saw a spike in refinances, but more than 2 million low-income families did not take advantage of the record low mortgage rates by refinancing,” said Mark Calabria, FHFA director.
“This new refinance option is designed to help eligible borrowers who have not already refinanced save between $1,200 and $3,000 a year on their mortgage payment.”
“It’s a very homeowner-friendly move that should help people stay in their homes and give them more financial breathing room.” –Jeff Taylor, Co-founder, Mphasis Digital Risk
The program can also help lower-income families struggling due to the pandemic by freeing up cash flow and reducing their monthly financial burden.
It could even help down-on-their-luck borrowers keep their homes in some cases.
“The money saved by refinancing can be used to help those who have experienced a job loss or some financial impairment since the start of the pandemic,” said Jeff Taylor, co-founder of Mphasis Digital Risk and a board member at the Mortgage Bankers Association.
“It’s a very homeowner-friendly move that should help people stay in their homes and give them more financial breathing room,” he says.
Should you wait to use RefiNow or Refi Possible?
There’s no way to perfectly time your refinance, but for lower-income borrowers, the FHFA’s new initiative just may be worth the wait.
With the guaranteed rate cut, reduced monthly payment, and waived fees, the savings could be significant.
If you’re worried about interest rates rising, you could consider applying for your refinance now and choosing an extended rate lock. This would allow you to lock in today’s historically low rates as you wait for summer to roll around.
You can also speak to a loan officer or mortgage broker for more specific advice. They can guide you on the best move for your financial situation.
Source: https://themortgagereports.com/76254/new-refinance-option-for-low-income
Refinances- contact Betty Rauch 954.410.1960 Apply.SFL mortgages.com
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