Buying After Deed in Lieu of Foreclosure is a post from: Jumbo Loans

Many in the Paradise Valley Real Estate market found themselves over-extended.

Buying After Deed in Lieu of Foreclosure
A DIL is a derogatory item for your credit report, but it is better than an actual foreclosure. Being cognizant of your options and how to repair your credit report is vital to your financial success and getting yourself back on track. You still have options. Here are the basics:
What exactly is adeed in lieu of foreclosure?

How is my credit affected?

Is there a way I can fix it?

A deed in lieu (DIL) is a deed instrument in which the borrower moves the interest in an actual property to the lender. They are often used as a means to satisfy a defaulted loan in an attempt to avoid foreclosure. The DIL offers many advantages to both borrowers and lenders as it relieves both parties of several of the intricate, complicated proceedings of foreclosure. The DIL is regularly established by the borrower who then negotiates with the lender.
Regrettably, a DIL have adverse effects on your credit, but it is notably less than a true foreclosure or bankruptcy. It is still a form of delinquency, and it will be marked as such in your credit report. This will affect any kind of new financing or credit approval you attempt to get at a later time, so it is crucial that you find ways to begin fixing it in the event you decide that you need to make any important purchases at a later date. You shouldcheck to see if the lender marks Settled or Paid to your credit history when it is cleared so that it isnt reported as a seriously derogatory item such as a foreclosure.
The best method to triumph over retaining a deed in lieu in your credit report is to make a financial strategy, manage and improve your credit file, and rebuild. Your credit wont fix itself at lightspeed, but you can surely make gradual progress. You possess the ability to apply for new credit accounts and make your payments in a timely manner and manage the account as responsibly as possible. Carefully manage any credit accounts you still have at the time of the deed in lieu of foreclosure. Paying revolving balances on time will positively affect your FICO score. It is not recommended to open too many accounts because this can affect your FICO score negatively.

Jumbo Loan Limits Extended Until 2011 is a post from: Jumbo Loans

Jumbo loan limits have been extended through September 20, 2011 – and although there was some speculation as to whether or not the US Congress would pass the bill, they passed it.

The conforming loan limit will still be a maximum of $729,750 in areas that are designated “high cost” and anything over that will be considered a nonconforming loan, or a jumbo mortgage, and runs the risk of having a higher mortgage interest rates.

There was some speculation that Congress would not pass the extension of the conforming loan limit and it was expected that they may retreat back to $625,500 after Dec. 31, 2010. But with the recent extension, at least through 2011 the jumbo loan limit will be the higher amount ($729,750)

Realtors Happy About The Jumbo Loan Limits Extension

Realtors in all areas of the country were excited about the higher loan limits – particularly those Realtors who are in high-cost areas like California.

Without the extension of the higher loan limits, many California borrowers would have a harder time refinancing homes and obtaining financing for new home purchases, said CAR President Steve Goddard.

Jumbo Mortgage Lenders Also Happy

Extending the existing limits is essential to helping borrowers continue to have access to affordable long-term, fixed-rate mortgage credit in todays struggling economy, said Robert E. Story, Mortgage Bankers Association chairman. The current limits have been a key component of keeping the mortgage market functioning, helping keep mortgage interest rates low for consumers who want to purchase a home or refinance an existing mortgage.

With the availability of more jumbo loan financing due to higher loan limits, it is expected to help the real estate market as it tries to recover.

Higher Jumbo Loan Rates in 2011 is a post from: Jumbo Loans

Jumbo loan rates are most likely header higher in 2011 as the temporary jumbo loan limits expire in 2010. Back in 2008, as part of the economic stimulus package, the highest jumbo loan limits were raised to $729,750 in the most expensive parts of the country.

But effective in 2011, expect jumbo loan rates to head higher. The highest jumbo loan limit even in the highest cost regions will drop to $625,500 for loans that are purchased by Fannie and Freddie. Not all jumbo loans are backed by the GSE’s of Fannie Mae or Freddie Mac – so this only impacts those jumbo loans backed by them.

However, because of this change, it is expected that jumbo loan rates will rise higher than they are now because of basic supply and demand reasons. Less supply means higher interest rates.

This could mean that if you are considering the purchase of new home that will require a jumbo mortgage, it might make sense to complete that purchase before the end of this year. After this year, rates for jumbo mortgages are expected to be considerably higher. Currently jumbo loan rates carry about a one-half point premium over conventional loans. This is expected to go up. Currently, you can reasonably expect a jumbo loan to be in the 5-6% range and with higher borrowing costs on the horizon, it may be a good time to act now.

Federal Reserve Board Redrafts Rule on Jumbo Escrow Accounts is a post from: Jumbo Loans

The Federal Reserve Board (FRB) submitted a plan to redraft the escrow account requirements for higher-priced, first lien “jumbo” mortgage loans. It uses a provision of the Dodd-Frank Wall Street Reform and Consumer Protection Act, and would increase the annual percentage rate (APR) threshold used to establish whether a mortgage lender is required to establish an escrow account for property taxes and insurance for first-lien jumbo mortgage loans. In the United States, a jumbo mortgage is a mortgage loan in an amount above conventional conforming loan limits.

In July 2008, the Board issued final rules requiring creditors to establish escrow accounts for first-lien loans if a loan’s APR is 1.5 percentage points or more above the applicable prime offer rate. Under the Dodd-Frank Act, which amended the Truth-in-Lending Act (TILA), the escrow requirement will apply for jumbo loans only if the loan’s APR is 2.5 percentage points or more above the applicable prime offer rate. The APR threshold for non-jumbo loans stayed the same.

The Dodd-Frank Act incorporates into TILA the Board’s regulatory requirement for escrow accounts and revises the APR threshold, but the act also includes other provisions, including new disclosure requirements. This change would implement only the act’s modification to the APR threshold. Other provisions of the act concerning escrow accounts will be fulfilled in a separate rulemaking.

The proposed change would not affect the APR threshold used to determine whether a jumbo loan is subject to the other consumer protections that the Board adopted for higher-priced loans in 2008. Those protections include requirements for determining consumers’ repayment abilities and restrictions on pre-payment penalties.

The Board is soliciting comment on the proposed rule, including the appropriate implementation date, for 30 days after publication in the Federal Register.

Trying to make sense of it all? Contact someone who is the expert in jumbo loans.

Jumbo Loans Making Comeback and Boosting High-End Sales is a post from: Jumbo Loans

The newest drop in rates doesn’t seem to be doing much for conventional loans, but for jumbo loans it is a different matter. Those at higher income levels might not be as worried about jobs as others. Currently it seems that the best hope for the housing market is to keep these rates lower. Now big banks are joining the charge to give out jumbo loans. Mortgage brokers are still more qualified to handle your jumbo loan.

How low are the current jumbo rates? Last year at this time, a 30-year fixed jumbo rate was averaging more than 6 percent. It’s now at an all time low average of 5.07 percent. And the re-finance rate for a 30 year jumbo is currently at 5.30 percent. A fifteen year jumbo is at the historic low average of 4.68 percent.

The market has shifted from one extreme to the other; now lenders require high-net borrowers to put down as much as 40 or 50 percent for a down payment compared to only 20 percent a few years ago. Borrowers must also have good income, strong credit scores of 700 or better and sufficient financial reserves. In addition these creditworthy buyers are waiting longer to close their jumbo mortgages while banks intensely study financial documents and complete their due diligence. Low and no down payment and adjustable rate schemes are no more.

The biggest mortgage players —  agencies Freddie Mac and Fannie Mae — increased conforming loan limits from $417,000 to $729,750, cutting more than $312,000 off the jumbo market that once was the optimal area of gain for brokers. The sky may be lightening however, credit is relaxing , interest rates are low again, new creative loan plans are making an appearance and repressed demand for high-end housing is anxious to enter the market. Unlike conventional mortgages, jumbo loans by definition exceed the conforming loan limit of $417,000 set by Fannie Mae and Freddie Mac. Jumbo rates are loosely tied to long term treasuries but they are traditionally higher because of the risk involved for the banks in making a larger loan. Strict or not, the banks are lending and refinancing jumbo loans at much higher volumes than last year.

If you are looking to get into a jumbo rate mortgage or are interested in refinancing your current jumbo loan please contact the jumbo loan expert.

More Jumbo Lenders Willing To Lend is a post from: Jumbo Loans

If you live in places like New York and are looking for a jumbo loan, chances are that you may have noticed that some lenders are coming back into the market.

Not all lenders, mind you  – but at least a few are starting to loan people with great credit and healthy down payments jumbo loans up to as high as $10 million.

In the tri-state area, jumbo loans are loans that exceed $729,750 – and with the real estate market not losing ground as rapidly (and actually rising in some areas) as it has in recent years – more people are ready to settle into a larger loan amount.

Courtesy HSH / WSJ

What kind of interest rates can you expect when thinking about jumbo loan financing? According to the Wall Street Journal, jumbo loans are getting more competitive with regards to price.

Gibraltar Private Bank & Trust, based in Coral Gables, Fla., has been particularly competitive, offering jumbo loans as large as $10 million. “It’s a clear differentiator that we are aggressively lending to the affluent in New York,” says Chris Damian, Gibraltar’s chief lending officer. “We’re doubling our lending staff in the New York market by year-end, which is an indication that this market is booming.”

Interest rates on jumbos typically are higher than rates on smaller mortgages, but the gap has narrowed in the past year. Overall, jumbo mortgages offered in the New York area on a 30-year jumbo loan have declined to 5.59% as of last week from an average of 6.35% a year ago and to 5.13% from 5.91% on a 15-year jumbo loan, according to HSH.

But several small local banks are offering jumbos under 5%. For example, on Monday, Valley National Bank was advertising 30-year jumbos at 4.75% and 15-year jumbos at 4.5%, according to the bank’s website.

The cost of adjustable-rate jumbo mortgages is also falling. On Monday, Apple Bank lowered its rate on a five-year adjustable rate mortgage to 4.25% from 4.5%. A few banks, including J.P. Morgan Chase, are offering rates as low as 3.75% for borrowers making a down payment of at least 20%.

So if you happen to be in the market for jumbo loan financing – look for lower interest rates and more jumbo loan lenders willing to loan you money.

Jumbo Loan Rates At Lowest Levels Since 2003 is a post from: Jumbo Loans

Interest rates on jumbo loans have touched lows not seen since 2003 recently – which is good news for homeowners who currently have a jumbo loan or are looking at buying a home and financing it with a jumbo loan.

Courtesy WSJ

According to the WSJ:

Just a year ago, the average rate on a 30-year jumbo mortgage—a loan of more than $729,750 not backed by government-sponsored agencies Fannie Mae or Freddie Mac—was 6.86%, according to Greg McBride, a senior financial analyst at Bankrate.com. Now it is 5.48%—a rate that rivals those available during the height of the credit bonanza.

“In just the past couple of months, jumbo loans have really started to be competitively priced,” says Keith Gumbinger of HSH Associates, a publisher of consumer-loan information.

The recent low rates on jumbo loans has caused an uptick in refinancing activity – with some jumbo lenders reporting that jumbo refinancing up as much as 50% vs. what it was last year.

Jumbo Loan Refinancing Could Mean Big Savings

Because of the large loan amounts, if you can save even a single percent on your interest rate for a jumbo loan, it will add up to a large dollar savings each month. For example, a homeowner with a 30-year fixed-rate $800,000 mortgage at 6.86% pays $5,247 a month. If he were to refinance at 5%, his monthly payments would be reduced by $952.

Jumbo Lenders: Still Available

Finding the right jumbo lender can be tricky – many mortgage brokers are no longer in business. There are still mortgage banks who can help you get your jumbo loan refinanced, and many of the larger banks are offering jumbo loan programs. Be sure to shop around for a jumbo loan, each lender will have different guidelines and different interest rates – and by shopping for your jumbo loan, you will save thousands and get the best possible deal.

New Jumbo Loan Programs Available in California is a post from: Jumbo Loans

As mortgage rates are at all-time lows, at least one lender is getting into the jumbo loans game by announcing their new jumbo and super jumbo loan programs.

According to MarketWatch, Bank of Internet announced that they have recruited a seasoned jumbo loan financing executive named Jerry Konzen who was previously with jumbo loan giant Thornburg Mortgage. Mr. Konzen is leading the jumbo loan program at B of I and when he was asked how B of I plans to compete in the jumbo loan market, he replied:

“We offer a concierge level of service to brokers, correspondents and their customers. We provide customers with highly customized portfolio financing solutions that exceed their expectations.”

The target market in California for the new jumbo loan and super jumbo loan programs are the affluent, educated and sophisticated borrower who knows how mortgage markets work and demands a high level of service.

There are flexible guidelines with this new jumbo loan program and since B of I is retaining these jumbo and super jumbo loans in their portfolio, they can allow more flexibility than if they packaged them up and sold them. For example, B of I will accept pledged assets, will vest in entities, and freedom to make common sense underwriting decisions.

With a return of at least one larger lender to the California jumbo loan market, it isn’t long before other lenders jump in and start offering jumbo loan financing — and it is a perfect time for consumers while rates are low.

Jumbo Mortgage Rates: Lowest Since 1971? is a post from: Jumbo Loans

While jumbo mortgage rates don’t *exactly* follow other mortgage rates, there is a correlation between conforming mortgage rates and jumbo mortgage rates.

And according to the AP, conforming mortgage rates are the lowest they have been on record since they started keeping track in 1971.

Even though mortgage rates are low, it hasn’t triggered a home buying frenzy because many people are still “stuck” in their home – where they owe more than their home is currently worth. And still more people are battling unemployment or have went through a short sale or foreclosure and as a result have bad credit.

But if you find yourself in a situation where you have a job, have good credit and are looking to buy or refinance a home…

There has never been a better time.

Well, not since 1971 at least.

Chicago Realtors Pushing For Higher Jumbo Loan Limits is a post from: Jumbo Loans

When you go to finance a home, whether or not you qualify for a FHA jumbo loan is going to depend on what Fannie Mae and Freddie Mac say about the conforming loan limits in your area.

And in the Chicago area (as well as many other parts of the country), the conforming loan limit is $417,000. For FHA loans, it’s $410,000. But in plenty of other parts of the country, home buyers can finance up to $729,750 because they are considered “high-cost” areas.

And the Chicago and Illinois Realtors’ associations are trying to muster support to convince the agencies to raise the loan limit for high-cost portions of the Chicago area.

According to the Chicago Tribune:

“This is at the crux of the problem with the marketplace here,” said David Hanna, a former president of the Chicago Association of Realtors and a member of a local task force trying to change the loan formula for the Chicago area. “The loan limit here is the same as it is in Dayton or Columbus or Peoria or Pekin. That’s crazy. It’s fundamentally unfair. Everything else here mirrors higher-cost areas in other parts of the country.”

According to a brochure the group has developed to lobby the GSEs and congressional leaders, one remedy for the problem would be to base the lending limit for a Chicago-area county on 125 percent of the highest median home price of a given municipality within that county. Using 2006-2008 home values as an example, that would mean the lending limit would be $868,500 for Cook County, based on a median home price of $694,800 in Wilmette. Other county loan limits, using prices from the same time, would range from $417,625 in Kendall County to $1.125 million in Lake County.

If an increase of the jumbo loan limits for the Chicago area are approved through the Realtor Association efforts, many people think that the move would allow many homeowners who are currently up against the conforming loan limit to refinance into a more affordable loan program while rates are low.