A good mortgage friend of the Kaspar Team, Eleanor Thorne of New Garden Mortgage, recently sent us some important info we wanted to pass on:
Dear Friends:
WATCH OUT!!! Last month Fannie Mae and Freddie Mac announced new loan level adjustments. They are moving to a risk based pricing model, no doubt in response to recoup foreclosure losses and mitigate future losses. These adjustments will mostly be based on FICO score and DOWNPAYMENT. Currently, Fannie and Freddie conforming loans require a 620+ FICO for "standard pricing." Higher FICOs, of course, might entitle someone to slightly better pricing.
With these announced changed (they go into effect March 1, 2008) there will be additional loan level pricing adjustments for FICO scores below 680. If the Loan-to-Value (LTV) is greater than 70% (THAT's RIGHT NOT THE 80% LTV we are all use to - now you will need 30% investment for best pricing ), the pricing adjustments are as follows:
The following table illustrates the rates and costs for a borrower with a loan amount of $300,000.
Credit Score Delivery Fee Rate Cost
Below 620 2.00% $6,000
620-639 1.75% $5,250
640-659 1.25% $3,750
660-679 0.75% $2,250
If you didn't think knowing how to work with credit was important, now you know it is!
This new risked base pricing will be on Conforming Fixed (Greater than 15 year) and ARM programs. Other Fannie/Freddie programs like the My Community Mortgage (MCM), Expanded Approvals (Levels 1, 2 or 3), Home Possible, FHA/VA and Jumbo loan products will not be affected.
Most banks have not adopted these changes (YET!). With all of the changes in the Mortgage Market in the past few months, this will likely have the most significant impact. Some have said that this equates to "double dipping on the risk assessment." I personally think it's like TRIPLE dipping because the threshold is now a 30% investment!
Conforming loans have always been priced based on risk. Mortgage Insurance is still required if the LTV is less than 80%. There's no news yet if some investors will now require insurance down to the 70% threshold - and there's no way to know if the Mortgage Insurance Companies will raise their rates - but it seems logical that they will.
Bottom line is - the cost of obtaining a mortgage WILL go up in the coming weeks. The public is going to hear that the Fed is cutting rates (potentially next week) and think they can get a deal. Well, the jobs numbers today were inflationary, and with the added fees from Fannie and Freddie, the public might be in for a shock!
You can contact Eleanor (below) be sure to tell her Vic Kaspar and the Kaspar Team recommended you give her a CALL!
Eleanor Thorne, New Garden
Email: eleavor@gmail.com
Website: http://stevethorneonline.com
Office Phone: (919) 649-5057
Description:
I've lived in North Carolina all of my life! I love it here! SELLING MONEY is a little more difficult these days - but it's still a GREAT BUSINESS to be in!
Submitted by Vic Kaspar, lead Broker, Kaspar Team, ReMax United, Cary, NC. One of the top selling agents for Raleigh NC real estate!
Tuesday, December 11, 2007
Wednesday, December 5, 2007
Most Homes Sold in Triangle?
If you had to guess, which month did REMAX United sell more homes, November of last year, or November of 2007, this year? Remarkably, if you said, "November of this year, REMAX sold more homes than last year in Cary, Raleigh, Durham and the N.C. Triangle, you'd be right!
Who would have thought, listening to all the Real Estate Gloom and Doom in the Mainstream Media.
I'll be putting out the figures on this blog soon. Just thought you'd like to know, and it shows that with Real Estate Prices moderating in Raleigh, Durham, Cary, Chapel Hill Real Estate area. That reality, plus the fact that we're heading into the Holidays and dead of winter while finance rates stay around 6%, now is the best psychological and financial time to buy based on statistics of the Triangle Multiple Listing Service Board of Realtors. I'll follow up in a few days.
Meanwhile, see all the listings and great values in Real Estate Investing at update 2 times daily, 7 days a week at: www.KasparTeam.com
Who would have thought, listening to all the Real Estate Gloom and Doom in the Mainstream Media.
I'll be putting out the figures on this blog soon. Just thought you'd like to know, and it shows that with Real Estate Prices moderating in Raleigh, Durham, Cary, Chapel Hill Real Estate area. That reality, plus the fact that we're heading into the Holidays and dead of winter while finance rates stay around 6%, now is the best psychological and financial time to buy based on statistics of the Triangle Multiple Listing Service Board of Realtors. I'll follow up in a few days.
Meanwhile, see all the listings and great values in Real Estate Investing at update 2 times daily, 7 days a week at: www.KasparTeam.com
Sunday, December 2, 2007
No Doom and Gloom in Raleigh NC Real Estate!
With all the doom and gloom we hear in the local and national main stream media, most people get the impression that the real estate business is down in the area, because it is down somewhat nationally, and really hit a low point in some specific areas of the nation, like parts of the North East, Los Vegas, and others.
Well, just how many homes would you think have gone under contract, 'pending' in the Triangle here, IE: under contract to be sold? In just the past 2 weeks...the end of November to December 2nd? 50? 175 homes, 200 homes? 20 homes a day, which would be 280 homes sold in 2 weeks?
The real number of homes sold in the Raleigh, Durham, Cary and Chapel Hill area of North Carolina is 975 homes, which include a few plots of land. This figure is varified with the N.C.Board of Realtor's TEMPO MLS system, with a status check made December 2nd, 2007, 10:30 PM.
And that figure does not include Commercial Real Estate. 975 in 2 weeks in the 'off season' of November and December. Not bad, huh? 25,350 would be the total homes sold in one year at the pace of 975 homes sold each 2 weeks.
The actual number of homes sold in the past year, December 2, 2006 to December 2, 2007
is 36,987 residential homes, which does not count land, and commercial property, and the few FSBOs, which are a very, very small fraction of what the Real Estate Community sellers. One of the big reasons Real Estate Agents the vast majority of the homes, including selling a large percentage of For Sale By Owners, is that the Buyer Agent's Services are Free to the buyer, and a Trained Buyer Agent who does local business day in and day out as a noble profession, brings so much knowledge, skill and disclosure to the investment, that a smart buyer just naturally wants knowledgeable guidance in this purchase of a home, which in most cases, will be the largest single purchase a person will ever make.
Let us help you. It would be an honor. The award winning web site most use is: www.kasparteam.com It has up-to-date local real estate information, costs, pitfalls, and, local school information, and a complete in-depth listing of over 17,000 detached homes and town homes in Cary, Apex, Raleigh, Durham, Chapel Hill, Holly Springs, Fuquay -Varina, Clayton, Windell, Zebulan, Knighdale, and other Triangle N.C. area communities, like Wake Forest and Youngsville, N.C. Call our agent on duty at 919-469-6555.
Regards, Vic Kaspar, Lead Broker, Hall of Fame Realtor, REMAX United
Well, just how many homes would you think have gone under contract, 'pending' in the Triangle here, IE: under contract to be sold? In just the past 2 weeks...the end of November to December 2nd? 50? 175 homes, 200 homes? 20 homes a day, which would be 280 homes sold in 2 weeks?
The real number of homes sold in the Raleigh, Durham, Cary and Chapel Hill area of North Carolina is 975 homes, which include a few plots of land. This figure is varified with the N.C.Board of Realtor's TEMPO MLS system, with a status check made December 2nd, 2007, 10:30 PM.
And that figure does not include Commercial Real Estate. 975 in 2 weeks in the 'off season' of November and December. Not bad, huh? 25,350 would be the total homes sold in one year at the pace of 975 homes sold each 2 weeks.
The actual number of homes sold in the past year, December 2, 2006 to December 2, 2007
is 36,987 residential homes, which does not count land, and commercial property, and the few FSBOs, which are a very, very small fraction of what the Real Estate Community sellers. One of the big reasons Real Estate Agents the vast majority of the homes, including selling a large percentage of For Sale By Owners, is that the Buyer Agent's Services are Free to the buyer, and a Trained Buyer Agent who does local business day in and day out as a noble profession, brings so much knowledge, skill and disclosure to the investment, that a smart buyer just naturally wants knowledgeable guidance in this purchase of a home, which in most cases, will be the largest single purchase a person will ever make.
Let us help you. It would be an honor. The award winning web site most use is: www.kasparteam.com It has up-to-date local real estate information, costs, pitfalls, and, local school information, and a complete in-depth listing of over 17,000 detached homes and town homes in Cary, Apex, Raleigh, Durham, Chapel Hill, Holly Springs, Fuquay -Varina, Clayton, Windell, Zebulan, Knighdale, and other Triangle N.C. area communities, like Wake Forest and Youngsville, N.C. Call our agent on duty at 919-469-6555.
Regards, Vic Kaspar, Lead Broker, Hall of Fame Realtor, REMAX United
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