Register Real Estate Advisors

DALLAS (Dallas Morning News) – Texas’ mortgage delinquency rate in fourth quarter 2011 was about a third of a percentage point higher than in the previous quarter, the Mortgage Bankers Association reported yesterday. During the last three months of 2011, more than 276,000 Texas homeowners (9.07 percent) had missed a mortgage payment. Nationally, the rate was 7.58 percent. According to the mortgage bankers, Texas now has the 14th-worst mortgage delinquency rate among the states. One bright side: Texas’ fourth quarter delinquency rate was less than it was at the end of 2010.

Lock in Your Interest Rate for 150 Days! Chances are, you have heard this line before. But what you need to know is that if you are going to lock in a rate for that long, you can be sure the lender has added a cushion to that rate so that if rates go up, they don’t lose any money. When you are shopping for a mortgage, you need to compare many things, not just rates. Companies that lock your rate for long periods of time state they can safeguard you from volatility of interest rates while you are shopping for a home. Then they comfort you by adding that you can float down to a lower rate if rates reduce. In order for lenders to guarantee rates for a long length of time, they must be hedging the rate or they would lose money. I have seen some mortgage companies that will guarantee a rate for up to 5 months! The longer you lock into a rate, there is going to be a cost associated with it. Be on the lookout when shopping for your next mortgage!

This is a great article from CNN Money on the affordability of homes right now. If you are ready to take advantage of this unique buying opportunity, call us today. We have agents standing by to show you any home on the market. 281.288.3500

You can see the original article HERE.

Buying a home is now more affordable than it has been in the last twenty years.

Thanks to continued declines in home prices and rock-bottom mortgage rates, the National Association of Home Builders/Wells Fargo Housing Opportunity Index hit a record level of affordability.

According to the index, 75.9% of all new and existing homes sold during the three months ended Dec. 31 could have been comfortably purchased by families earning the national median income of $64,200.

That was the highest percentage recorded in the 20-year history of the index, and a sharp increase from just three months earlier when 72.9% of all homes sold were considered affordable.

Unfortunately, being able to afford a home and actually being able to buy one are two different matters entirely. According to Barry Rutenberg, chairman of the National Association of Home Builders (NAHB) and a home builder from Gainesville, Fla., potential home buyers are still finding it difficult to land mortgages.

“While today’s report indicates that home ownership is within reach of more households than it has been for more than two decades, overly restrictive lending conditions confronting home buyers and builders remain significant obstacles to many potential home sales,” he said.

Mortgages are cheap but you can’t get one

Those who do land a mortgage, will be able to take advantage of rates that seem to hit a new low every week. This week interest rates for 30-year loans averaged a record low of 3.87%, according to Freddie Mac.

Where the deals are

Youngstown, Ohio is the most affordable major metro area in the nation to buy a home, according to the NAHB. The faded steel town, located in eastern Ohio, could be on the verge of an economic renaissance with new gas drilling techniques that could help exploit nearby gas reserves, according to the report.

There, 95.1% of homes sold during the quarter were deemed affordable to typical local households earning the area’s median family income of $54,900.

The other metro areas near the top of the list included Lakeland, Fla., Modesto, Calif., Harrisburg, Pa., and Toledo, Ohio.

Among small housing markets, Kokomo, Ind. had the highest housing affordability index with more than 99% of all homes sold there affordable to typical families. Fairbanks, Alaska, Cumberland, Md., Lima, Ohio, and Rockford, Ill. were all very affordable as well.

New Yorkers could only shake their heads at the housing opportunities available outside their metro area. Just 29% of the homes sold in the New York metro area during the last three months of 2011 were affordable for the typical local family.

That’s the lowest level in the U.S. — even though locals typically earned $67,400, roughly $3,000 more than the national median. It was New York’s 15th consecutive quarter as the least affordable metro area.

Nearly as expensive are housing markets in Honolulu, San Francisco, Santa Ana, Calif., and Los Angeles.

WASHINGTON, D.C. (San Antonio Express-News) – Federal and state officials yesterday announced a $25 billion foreclosure settlement with five of the nation’s largest mortgage lenders. Of that, $428 million will come to Texas. But will it be enough to help?

Of Texas’ share, $141 million will go into the state’s treasury, while the remaining $287 million will go toward restructuring mortgage loans and to some borrowers whose homes were foreclosed.

But only 2 percent of mortgage holders in Texas may qualify, and they’ll probably receive less than $2,000 each. On top of that, the process could take as long as three years.

Real Estate Center Research Economist Dr. Jim Gaines said it looks like the benefit to Texans will be small.

“Of the 3.6 million mortgage loans in Texas, we’re going to maybe — maybe — help 85,000 of them,” he said.

The five lenders involved in the settlement were Ally Financial, Bank of America, Citigroup, JPMorgan Chase and Wells Fargo.

These Top 5 Quick Credit Tips from Register Real Estate Advisors (RREA) will help you increase your overall credit score:

5. Never cancel a credit card that is more than two years old. Having a “seasoned” account will help your credit.

4. Increase your maximum allowable credit limit. If you have a credit card that is close to being maxed out, call your credit card company and ask for an increase in your credit limit.

3. Don’t max out your credit lines. Credit Bureaus don’t like that.

2. You should spread out your balances among your credit cards. You want your debt ratio on credit card balances and credit limits to be at 30% or less.

1. Call our in house lender to pre-qualify for a home and find out what your credit score is for FREE!

If you need 100% financing to purchase a home, you should look into the USDA Loans. These loans require no downpayment. Although the homes must meet USDA eligibility, you’d be surprised at what is counted as rural property around Houston. To see if a property you want to purchase qualifies for a USDA Loan, call RREA and ask for our in house lender to get pre-qualified 281.288.3500. We have agents that can help you find the right property for your needs. Currently, inflation is around 3.5% and mortgage rates are close to 4%. You can write your mortgage interest rate off your taxes. So this loan has the potential to be a really good deal!

I get a lot of questions about refinaincing homes.  Many people will contemplate refinancing vs buying another home.  With interest rates remaining near historic lows it is a great time to purchase a home.  However, if you prefer to stay in your current home, it is only worth refinanancing, in my opinion, if your current rate is over 5% and you plan to stay in the home for atleast two years.  If you need to refinance your home or get a pre-approval to buy a home, our RREA inhouse lender can help.  You can apply for a mortgage online with RREA or call 281.288.3500 and ask for Terry Traylor. 

Looking for ways to increase your credit score? There are some tips you need to know that will help you increase your score. The first is, never cancel a credit card that is more than two years old. Having a “seasoned” account, one that is more than 2 years old is beneficial for you.
Second, increase your maximum allowable credit limit. If you have a credit card that is close to its maximum balance, call the credit card company and ask them to increase the credit limit. The credit bureaus don’t like to see “maxed out” credit. Ask them to do this without pulling your credit.
In addition, spread out your balances among your credit cards to keep the ratio between cards balanced and credit limits to 30% or less. Finally, be sure to pay your bills on time. The number one reason for a low credit score is late payments. Studies have show that 79% of all credit reports have errors on them so check your credit periodically to look for mistakes. Remember that lower scores mean higher interest rates for buyers. Keep in mind that the “free” on line credit reports DO NOT include your credit score. You have to pay extra for your FICO score. So if you are thinking about purchasing a home, please call RREA’s in house lender, Terry Traylor, to apply. If anything negative shows up on your credit, Terry can help you fix it over time.

Are you purchasing a home in the flood plain? Investors are now requiring lenders to actually have a flood policy prior to closing, and receipt that it is “paid in full”. These must go through FEMA for final approval and that takes some time. So, before you close on a property in a flood plain, know what is expected from your lender. Be sure the lender knows from the start of the transaction that the property you are purchasing is in a flood plain. Get your flood insurance in order as soon as possible. You have to sign the insurance application and pay for it to show that it has been “paid in full.” Then your lender will send the policy through FEMA for final acceptance. THe more information your lender has about the property up front will help the loan process to go smoother and close on time.

Hey guys, White Board Monday again. This week is on your mortgage payments. I hope you find it informative.

RREA has an in-house lender to get you qualified today! Call or email today to get started. 281.288.3500 or jay@rrea.com