Mortgage matters

Credit score changes. Who loses?

You know that real estate bubble I keep saying is inflating? It just got a pump of air. I agree with Jim Morrison at Banker and Tradesman that easing credit restrictions is the wrong thing to do. It didn’t go well in 2006, and it won’t end well this time. What’s happened? Credit reporting has

Higher interest rates

Do you know what it will cost you to borrow at a higher interest rate? If your rate changed from 3.5 percent to 3.75 percent, the cost would be an additional $14 per month, per $100,000 of principal. This increases slowly to $15 per month, per $100,000 when the interest rate changes from 4.5 to

Scare the buyers, sales hype 2017

Dear Boston Globe, It is February 28, 2017.  Too early for your annual “scare the buyers” article. Please wait until spring. But, since you chose to publish now. I will translate for my clients. Definitions: Sales volume: the number of housing units sold in a given period. Median sales price: The middle price from a

The Chinese government is helping our clients

Q: How does monetary control policy in China affect buyers in Boston? A: Strict control of cash leaving China has slowed or stopped the flow of money used for down payments by Chinese people buying international properties. This is good news for our buyers. Source Since the Great Recession in America (2008), one of the

That break for FHA mortgages just disappeared

It took the Trump a New-York-minute to start making it harder for moderate income American to buy a house. On Friday, he revoked a reduction that was set to begin on January 27, 2017. The reduction would have lowered the annual mortgage insurance premium (MIP) that borrowers pay on FHA loans through HUD.  The premium

By | 2017-01-27T10:03:28+00:00 February 1st, 2017|Categories: Mortgage matters|Tags: , , , |

Forecast 2017 for buyers

General: most of the number-crunching services are predicting that housing prices will be stable. This means they will increase, but at a slower rate than we have been seeing over the past three years. Deregulation will loosen mortgage requirements. This is a positive for first-time buyers who are on the brink of purchasing. Some will

By | 2016-12-28T14:00:57+00:00 December 28th, 2016|Categories: Buying trends, Market data and conditions, Mortgage matters|

Credit scores, the very basics

Your credit report is a full list of who you have open credit with, and how loyal you are about repaying those debts. Your credit score is a number compiled based on how you are handling that debt. The algorithm used to determine you credit score changes, but there are some basic rules. Have open

By | 2016-12-28T14:00:59+00:00 July 27th, 2016|Categories: Money and finance, Mortgage matters|Tags: , , |

Change in credit score calculation coming soon

Mortgage underwriting change. What does it mean to you? There’s a new version of credit analysis that will be part of the approval process. Changes will start having an effect when the new Fannie Mae Desktop Underwriter* launches June 25th.  It will allow lenders to discern between applicants who carry balances on credit cards vs.

How are credit scores calculated?

Long before you apply for a mortgage, it is a good idea to check your credit score. Credit scores determine if you qualify for a loan and the rate you pay for your loan. If your credit score is low, you may not be able to get a mortgage, even if you have the down

Scam warning!

There's a new scam in town. It is the child of an old scam. It is very lucrative for the perpetrators, until they get caught. Here's how it goes: Unsecured emails have been tapped by the evil-doers. The perps write to the buyers, just before closing, from the email address of their agent, lender, or

By | 2016-12-28T14:01:03+00:00 January 27th, 2016|Categories: buying process, House Hunting, Money and finance, Mortgage matters|Tags: , , |