The Mortgage Experts are up-to-date in all news of the economy and housing market. If you missed our recent airing with co-hosts Jason Grote and Dan Podesto you can catch up by listening to our most recent podcast of Mortgage Matters Radio here!
In the news, manufacturing grew in February at the fastest pace in 20 months as consumers increased spending 0.2 percent in January from December. More specifically, factory goods classified as “core capital goods”, such as machinery, construction equipment, and computers, rose an entire 6.3 percent in January from December.
The sales of new homes jumped nearly 16 percent in January to their highest level in 4 ½ years, since July of 2008. Overall, the West continues to lag as the lowest month over month percentage with the Northeast up 8.2 percent, the Midwest up 4.5 percent, the South up 5.9 percent and the West essentially flat with only a 0.1 percent increase.
Listen to our podcast to learn more about the sequester, how re-casting can reduce your mortgage payments, and much more!
Tune in to Mortgage Matters on KVEC 920 this Saturday (3/2) from 10 a.m. to 12 noon. Click HERE to listen live online between those hours. Joing the real estate experts and hosts Dan Podesto and Jason Grote as the discuss the “sequester” and accompanying spending cuts coming into effect. Also, keep up-to-date with our weekly economic update on the housing market.
If you can’t make it, check in here next week for a copy of the show on our Mortgage Matters archive.
Under today’s guidelines, the mortgage insurance stops automatically when the loan reaches the 78% loan-to-value. The mortgage insurance has a five-year minimum, but the equity can be gained by advance payments, property appreciation, or both.
This is a game changer and I urge all people that are “on the fence” to realize that this detail changes the landscape dramatically and should serve as a call to action for all prospective buyers that intend to use FHA for home financing.
In addition to the the mortgage insurance term changing there are also general increases to the monthly cost of all FHA loans. Call us today at 805.543.LOAN to learn how the changes will impact you and to craft your custom finance plan.
Central Coast Lending is a California mortgage brokerage based in San Luis Obispo County. With offices in San Luis Obispo, Morro Bay, Paso Robles, and Arroyo Grande, Central Coast Lending is the top source for Central Coast mortgage, real estate, and home loan needs. To see why using a broker offers lower rates and superior service, click HERE. For a free, hassle-free online pre-qualification click HERE or call 805.543.LOAN to talk to one of our expert loan officers.
[Editor's note: We asked Jason Grote (Central Coast Lending owner and Mortgage Matters host) how the latest Fed action would move interest rates. His reaction (generally speaking): the program should create an environment with a strong downward pressure on mortgage rates, although its the open-ended clause complicates our ability to make longer-term projections].
An escrow impound account is a trust account held by the lender of your new loan to facilitate the collection and payment of your property taxes and/or home owners insurance. If you elect to have an escrow impound account, you simply pay 1/12 of your annual property taxes and 1/12 of your annual homeowners insurance in addition to your regular required mortgage payment every month. Impound accounts are not generally required unless you have less than 10% equity in your home.
The mortgage interest rate is determined by supply and demand, perceived risk of similar investments, and the general health of the overall economy. Bottom line, when the economy is strong and growing and health is evident, money flows into the stock market and rates go up to compete for investors. When the general economy is weak or uncertain, investors choose the safety of investments like bonds and interest rates go down. Read more
Those of you who listened to the State of the Union may have noticed that President Obama mentioned a new mortgage plan that would help responsible underwater homeowners refinance. Will we finally see this plan unfold? So far the president has pitched an idea to rescue as many as 3.5 million struggling Americans who owe more than their homes are worth. Here, pitched is the operative term.
In his weekly column, Central Coast Lending co-owner and broker Jason Grote takes a look at refinance and uses an example to expand on the question – when does it make sense to refinance? Jason explores the idea that it could make the most sense to lower your rate term and increase your monthly payment.