Mortgage loan

Either Way, You’re Still Paying a Mortgage

Posted by Margaret Szerlip 12PM EST, Newton, MA.   Newton, MA. Top Brokers, Sotheby’s Newton, MA.

Thanks for sharing KCM Crew..

Either Way, You’re Still Paying a Mortgage

Either Way, You’re Still Paying a Mortgage

Posted: 04 Nov 2014 04:00 AM PST

Either Way You're Still Paying a Mortgage | Keeping Current Matters

There are some people that have not purchased a home because they are uncomfortable taking on the obligation of a mortgage. Everyone should realize that, unless you are living with your parents rent free, you are paying a mortgage – either your mortgage or your landlord’s. As a paper from the Joint Center for Housing Studies at Harvard University explains: 

“Households must consume housing whether they own or rent. Not even accounting for more favorable tax treatment of owning, homeowners pay debt service to pay down their own principal while households that rent pay down the principal of a landlord plus a rate of return. That’s yet another reason owning often does—as Americans intuit—end up making more financial sense than renting.”

Also, if you purchase with a 30-year fixed rate mortgage, your ‘housing expense’ is locked in over the thirty years for the most part. If you rent, the one guarantee you will have is that your rent will increase over that same thirty year time period.

Unless you are living with your parents rent free, you are paying a mortgage. #KCM2014
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As an owner, the mortgage payment is a ‘forced savings’ which will allow you to have equity in your home you can tap into later in your life. As a renter, you guarantee the landlord is the person with that equity.

Bottom Line

Whether you are looking for a primary residence for the first time or are considering a vacation home on the shore, owning might make more sense than renting since home values and interest rates are still at bargain prices.

Taking the Spooky Out of the Mortgage Process

Posted by Margaret Szerlip 11:00AM EST, Newton, MA.

Taking the Spooky Out of the Mortgage Process [INFOGRAPHIC]Posted: 31 Oct 2014 04:00 AM PDT

Taking the "Spooky" Out of the Mortgage Process | Keeping Current Matters


Buying a Home with as Little as 3-5% Down Payment

Buying a Home with as Little as 3-5% Down Payment

Posted: 30 Oct 2014 2:30PM EST Newton, MA.

Buying a Home for as Little as 3-5% Down | Keeping Current Matters

We have recently reported on the misconception that many buyers have regarding the down payment necessary to purchase a home. Multiple studies reveal that 40-50% of Americans believe you need between 15-20% of a down payment to be eligible to purchase a home. This misconception came about as the government just last year debated new guidelines for residential mortgages because of the housing collapse in 2007. Some were arguing that there should be a minimum of 20% or even 30% down payment on all mortgage loans. However, those standards were never implemented. To counter this misunderstanding, Christina Boyle, Freddie Mac’s VP and Head of Single-Family Sales & Relationship Management, in a recent Executive Perspectives explained that a person “can get a conforming, conventional mortgage with a down payment of as little as 5 percent”.

3% Down Payments Available Soon?

Just last week, Federal Housing Finance Agency Director Mel Watt announced that mortgages requiring only a three percent down payment may soon be available:

“To increase access for creditworthy but lower-wealth borrowers, FHFA is also working with the Enterprises to develop sensible and responsible guidelines for mortgages with loan-to-value ratios between 95 and 97 percent. Through these revised guidelines, we believe that the Enterprises will be able to responsibly serve a targeted segment of creditworthy borrowers with lower-down payment mortgages by taking into account “compensating factors.”

Bottom Line

If you are saving for either your first home or that perfect move-up dream house, make sure you know all your options. You may be pleasantly surprised. Line-Break

30 Year Fixed Rate Mortgage Rate Spikes 14 Basis Points

Newton, MA. top Brokers, Sotheby’s Newton, MA.

30-Year Fixed Mortgage Rates Spike 14 Basis Points, Largest Rate Hike Since November 2013; Current Rate is 4.19%, According to Zillow Mortgage Rate Ticker



SEATTLE, Sept. 16, 2014 (GLOBE NEWSWIRE) — The 30-year fixed mortgage rate on Zillow® Mortgages is currently 4.19 percent, up 14 basis points from this time last week. The 30-year fixed mortgage rate rose steadily last week, peaking at 4.30 percent on Sunday before easing down to the current rate.

“Last week, rates hit a five-month high on anticipation that the Fed’s policy statement might suggest an earlier than expected hike in the federal funds rate,” said Erin Lantz, vice president of mortgages at Zillow. “This week, any significant movement in rates will stem from the Fed’s Wednesday announcement, which could reveal how quickly the federal funds rate will rise after the stimulus program ends.”

Zillow’s real-time mortgage rates are based on thousands of custom mortgage quotes submitted daily to anonymous borrowers on the Zillow Mortgages site, and reflect the most recent changes in the market. These are not marketing rates, or a weekly survey.

The rate for a 15-year fixed home loan is currently 3.26 percent, while the rate for a 5-1 adjustable-rate mortgage (ARM) is 3.03 percent.

Purchase Mortgage Application Activity

Zillow predicts tomorrow’s seasonally adjusted Mortgage Bankers Association Weekly Application Index will show purchase loan activity decreased by 4 percent from the week prior. Zillow combines loan requests made on Zillow Mortgages last week with the previous week’s Mortgage Bankers Association (MBA) Weekly Application Index to predict the MBA’s Weekly Application Index for purchase loans, which will be released tomorrow. For more information about this prediction, visit

Below are current rates for 30-year fixed mortgages by state. Additional states’ rates are available at:

State Current
Fixed Rate
Last Week’s
Fixed Rate
Change in
California Mortgage Rates 4.18% 4.08% +10
Colorado Mortgage Rates 4.17% 4.07% +10
Florida Mortgage Rates 4.19% 4.07% +12
Illinois Mortgage Rates 4.20% 4.08% +12
Massachusetts Mortgage Rates 4.26% 4.10% +16
New Jersey Mortgage Rates 4.14% 4.01% +13
New York Mortgage Rates 4.28% 4.12% +16
Pennsylvania Mortgage Rates 4.19% 4.08% +11
Texas Mortgage Rates 4.18% 4.02% +16
Washington Mortgage Rates 4.15% 4.04% +11


Why Are the Letters ‘CFPB’ and ‘QRM’ So Important?


Newton, MA.  realtor….West Newton Hill, Realtor


‘d like to pass this on….

As professionals in the housing market, we must be able to give expert advice to our clients in order to guarantee that they make the best decisions for themselves and their families.

When talking to potential purchasers, we must be able to intelligently discuss the changes that will be taking place in 2013 because of CFPB and QRM. These changes will have a major impact on the mortgage process and a buyer’s ability to finance their purchase of a home.

Consumer Finance Protection Bureau (CFPB)

The Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 created the CFPB. Its purpose is explained on their website:

“The central mission of the Consumer Financial Protection Bureau (CFPB) is to make markets for consumer financial products and services work for Americans — whether they are applying for a mortgage, choosing among credit cards, or using any number of other consumer financial products.”

The site goes on to explain:

Like a neighborhood cop on the beat, the CFPB supervises banks, credit unions, and other financial companies, and we will enforce Federal consumer financial laws.”

In 2013, the CFPB will put its stamp on the mortgage industry in the United States. We should keep ourselves aware of the changes that will be coming and their impact on the home purchase experience. One of these changes will be QRM.

Qualified Residential Mortgage (QRM)

The Consumer Financial Protection Bureau (CFPB) and other federal agencies are currently developing guidelines for loans that will have a statistically lower risk of default, based on the underwriting guidelines and product features built into the loan. A loans meeting these new guidelines will be a qualified residential mortgage.

What impact will this have on the mortgage market?

According to the Qualified Residential Mortgage Resource Center:

 “The bottom line is that borrowers who fail to meet the basic criteria for a qualified residential mortgage will have a harder time finding a loan, when compared to borrowers who do meet those criteria. They might end up paying a higher interest rate, as well…Financial analysts from J.P. Morgan Securities have estimated that borrowers might pay up to three percentage points more for loans that are subject to risk-retention (i.e., loans that don’t meet the definition of a qualified residential mortgage).” 


Newton Real Estate Reacap 2012 vs 2011

Newton, Realtor, Best Newton Realtor, Listing and Buyers Agent Newton, MA.

Yes the real estate market in Newton is better!  Inventory is extremely low…homes are going under agreement at an accelerated pace.

January 1, 2011 through August 15, 2011

335 Homes Sold

Average List Price – $978,000

Average Sale Price – $944,000

Median Sale Price – $$785,000

January 1, 2012 thru August 15, 2012

425 Homes Sold

Average List Price – $996,000

Average Sale Price – $$965,000

Median Sale Price – $804,000

These numbers correlate to a 20% increase in volume and a 2% increase in sale price.  Currently there are only 125 single family homes on the market.  Since this is a supply and demand business I would expect the sale price to continue on an upward trajectory, however, I do not see prices increasing at the fast pace they did in the old days.  Inventory will increase after Labor Day but 2012 is the first sellers market since 2007.  Seller’s,  get your home ready for sale, and I do mean ready; painted, de-cluttered, clean, repairs made.  Houses in excellent condition are selling at a considerable premium!  Conversely, houses that are not well cared for sell at a discount.  If you have $2,000.00 — spend it getting your house in order, you will get it back and more…!  Paint is an amazing tool!

Mortgage News: Taking Advantage of Low Rates

Newton, MA.  real estate,  Newton, MA.  homes for sale, Newton, MA.  seller’s agent, Newton, MA.  Top Realtor
Mortgage News 
Taking Advantage of Low Rates
By VICKIE ELMER of The NYT – 6/14/12

The mortgage market seems to have been dancing its own version of the limbo, as interest rates headed lower and lower for six consecutive weeks.

Although they inched up this past week, home buyers and refinancers may be wondering how low rates can go — and how they can capture the best rates now.

“Mortgage rates tend to fall when there are concerns about the economy,” said Jed Kolko, the chief economist for Trulia, the housing information Web site.

Lately, those concerns have centered on the economic and fiscal woes in Europe, especially in Greece and Spain — along with slow job growth and weaker-than-usual corporate profits in this country, as noted in a recent Freddie Mac market survey.

Many economists are forecasting that mortgage rates will rise again later this year as the American economy gradually improves and as more global investors turn to the United States as a safe haven for their money.

“It’s really tough for rates to go much lower,” said Cristian de Ritis, the director of Moody’s Analytics. “It’s almost unbelievable that you can get a 30-year mortgage at that rate.”

The average rate on a 30-year fixed-rate mortgage fell to a record 3.67 percent nationwide in Freddie Mac’s June 7 survey, though it rose to an average 3.71 percent on Thursday. The rate had averaged 3.9 percent just three months earlier and 4.5 percent a year earlier.

Mr. Kolko said the uptick was not entirely unexpected. “We’re in the midst of so much short-term uncertainty,” he said, adding that “no single week-over-week change can be taken as the start of a long-term trend.”

Mr. de Ritis said that rates could possibly fall further, perhaps as much as a quarter of a percentage point, but he added that it was more likely that they would start “a slow drift” upward. In six months, the rate on the 30-year fixed-rate mortgage could be at 3.8 to 3.9 percent, he predicted, and a year from now, 4.1 to 4.2 percent.

“If the economy does recover more aggressively than what we think, or what investors think,” he said, “then the Fed will likely raise rates.” The next two Federal Reserve Open Market meetings, which determine credit policy, are scheduled for June 19 and 20 and July 31 and Aug. 1.

Those planning to refinance or buy a home in the next two or three months, meanwhile, might want to consider locking in their mortgage rate now.

Borrowers with rate lock-ins, with a built-in deadline, often receive priority treatment from lenders, according to Russell Tucker, a senior vice president of Investor Home Mortgage in Short Hills, N.J. By having a lock-in, he said, a borrower is telling the lender that he or she is serious about closing soon. “If you’re not willing to lock in the interest rates,” Mr. Tucker said, “you’re not doing the push-ups.”

Lock-in costs and policies vary widely, and are based partly on the time frame you want covered.

Most people will need a 60- to 90-day lock. In New York State, especially, refinancing can take longer if the borrower is transferring the balance on a loan to a new lender to avoid paying a second mortgage transfer tax, a process known as “mortgage assignment.”

If interest rates continue to fall during the lock period, borrowers can ask their lenders to rewrite the rate lock, at an additional cost, or they can obtain a “float-down” provision in the original agreement, industry experts say. A lock with a float-down agreement allows the borrower to change the rate, often only once, before closing on the mortgage. This option is generally more expensive than a standard lock.

Although mortgage rates are at historic lows, borrowers need to understand that the advertised rates are generally for those with the best credit. “If your credit is in the mid-600s instead of the mid-700s, that could be as much as an extra percentage point on your mortgage rate,” Mr. Kolko said, referring to the widely used FICO credit score.

And if you’re in the New York area and borrowing more than $625,500 — the maximum allowed for loans resold to Fannie Mae or Freddie Mac — you will be obtaining a “jumbo” loan, which tends to carry higher rates.