December 20, 2007

Freddie Mac Rolls Out Two New Mortgages for Multi Family

Freddie Mac brings out two new mortgage products.

1. Acquisition Rehabilitation Mortgage: The total repair cost must be a minimum of $10,000 per unit but must not exceed the lesser of $30,000 per unit or 30 percent of acquisition cost. NOTE: This would allow an new buyer to completely rehab a property and reposition for a different target market. Perhaps a neighborhood in transition would be a prime reason to look into this option.

2. Acquisition Upgrade Mortgage: The total repair cost must be a minimum of $3,000 per unit but must not exceed the lesser of $10,000 per unit or 20 percent of acquisition cost. This product offers borrowers financing of up to 86 percent loan-to-purchase and 80 percent loan-to-cost. NOTE: This mortgage is designed for unit upgrades such as appliances or new bath remodels.

These new products can be obtained at the same time maximizing mony available for a big rehab with guaranteed rate lock-ins. More on the Freddie Mac page

Thanks for Reading

Freddie Mac Mortgage Update

Mortgage Rates Reverse Trend And Rise This Week
Housing Industry Still Struggling

McLean, VA Freddie Mac (NYSE:FRE) today released the results of its Primary Mortgage Market Survey® (PMMS®) in which the 30-year fixed-rate mortgage (FRM) averaged 6.11 percent with an average 0.5 point for the week ending December 13, 2007, up from last week when it averaged 5.96 percent as well. Last year at this time, the 30-year FRM averaged 6.12 percent.

The 15-year FRM this week averaged 5.78 percent with an average 0.5 point, up from last week when it averaged 5.65 percent. A year ago at this time, the 15-year FRM averaged 5.86 percent.

Five-year Treasury-indexed hybrid adjustable-rate mortgages (ARMs) averaged 5.89 percent this week, with an average 0.6 point, up from last week when it averaged 5.75 percent. A year ago, the 5-year ARM averaged 5.92 percent.

One-year Treasury-indexed ARMs averaged 5.50 percent this week with an average 0.6 point, up from last week when it was 5.46 percent. At this time last year, the 1-year ARM averaged 5.45 percent.

Direct from the Freddie Mac Site.

Thanks for Reading

December 4, 2007

Finally, Some Good News in the Sub Prime Markets

The Wall Street Journal writes of a discussion with Rosengren, the Boston Fed governor, who indicated that many of the sub prime holders had the ability to refi through the FHA. He goes on to note that 55% of the sub prime holders never missed a payment and had some euqity in their homes with reasonable FICO scores and were therefore good candidates for a FHA refi. The article goes on to say that amounts to 1.2 million loans that can be refinanced to lower risk.

What is amazing to me is that the average interest rate on a fixed rate two year loan was 8%. I looked on the net for a comprehensive directory of banks that provide FHA insured loans and couldnt find a single source. This makes it very hard to alert people to the possibilitiy of reducing risk or getting a more suited mortgage for their home. The HUD site offers some help, but didnt make it easy for consumers to find a bank.
If anyone has any information on DHA refinancing opportunities please share here

Thanks for reading
Howard Bell

December 2, 2007

Foreclosures on the Rise: A Deal in the Making

The Wall Street Journal reports that are up 94% since last year and now may be leveling off. Whats interesting according to the article is that the default rate is down 9% from last year. Its pure speculation as to why, but realtytrak CEO james Saccacio thinks that some of the programs put in place to help homeowners amy be beginning to make a mark.

Is Bush Cutting a Deal

Whats very hopeful to me is that according to MSN, the Bush Administration and some of the big banks are coming close to a deal that will help keep homeowners in their homes and supply off the market.


By having the major banks agree to keep those low teaser rates in place for a few more years. The banks just might go for this because some cash flow is better than none if homes move to foreclosure or default.

"An estimated 2 million of those initial low, teaser rates are scheduled to reset to much higher levels by the end of next year, pushing the payment on a typical mortgage from $1,200 per month to $1,550, an increase of $350. The concern is that many homeowners will not be able to meet the higher payments, triggering hundreds of thousands of defaults." From

This is a good market solution that wont require the Govt to bail out homeowners and the lenders take responsibility by keeping loans rates low , buying enough time to keep them in their homes. lets hope this goes through. The Treasury Secretary speaks before the national Housing Conference on Monday. Stay Tuned...

Thanks for Reading

Howard bell