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Even Without Uncle Sam’s Help, Mortgage Rates Still Holding Steady

April 23rd, 2010 categories: Loans / Financing

Interest Rates Still OKIf you checked out the Freddie Mac Weekly Mortgage Survey box on the left sidebar of our web site late yesterday, you’ll see that interest rates remain virtually unchanged from last week’s survey — which is a very good sign.

It’s now been three weeks since the federal government stopped buying mortgage-backed securities. And despite a prevailing consensus that rates would go up perhaps a half-percentage point shortly after Uncle Sam stopped propping up the mortgage market, so far so good.

As you’ll recall, the first week after the government got out of the mortgage-buying business was a little iffy, as rates immediately  jumped 1/8%. But then last week, they dropped back down by almost that same amount to an average nationally of 5.07% with 0.6 points.

And, as you can see in the box on the left side of our website, this week’s rate is essentially a carbon copy of last week: 5.07% with a 0.7 point for a 30-year fixed rate mortgage. Read the rest of this entry »

Written by Rod Herman | Discussion: No Comments »

Haven’t We Learned Anything?

April 20th, 2010 categories: Loans / Financing, The Economy, Viewpoint

I just got the following email in my spam folder, from a mortgage lender out of Southern California:

Subprime Part DeuxEven though we’re not even close to getting out of our nation’s worst financial mess since the Great Depression, we’re already beginning to see a smattering of snake oil salesman peddling loans that look and feel just like their subprime cousins that started this whole economic tailspin.

I guess I was naive to think that those flim-flam men and women who pushed people into homes they clearly couldn’t afford had left our industry for good.

No, it looks like they’ve just been laying low for the last few years. Read the rest of this entry »

Written by Rod Herman | Discussion: No Comments »

Good News For Solano Home Buyers: Interest Rates Drop Back Down This Week

April 17th, 2010 categories: Loans / Financing

There’s been a lot of talk in recent months (including right here) about what would happen to interest rates once the federal government stopped buying mortgage-backed securities and mortgage Rates Drop To 5.07pricing was left solely to the free market.

The prevailing sentiment at the end of March was that rates would go up by about a half-percentage point in the coming weeks. And that’s exactly what started to happened when the calendar changed from March to April.

As I reported last week, Freddie Mac’s weekly mortgage survey on April 8, showed that rates had reached an 8-month high at 5.21%.

So we all waited with baited breath for this week’s report to come out, wondering whether we’d see another 1/8 point jump in the rates.

Well, this week, the mortgage market did an about-face and rates are again right back to where they were on April 1, which is a very encouraging sign. Read the rest of this entry »

Written by Rod Herman | Discussion: No Comments »

Mortgage Rates Up This Past Week; How Will That Affect Solano County Home Buyers?

April 8th, 2010 categories: Loans / Financing

Interest Rates Going UpIn the first week since the government officially exited the mortgage assistance business, interest rates have started to rise, as many experts predicted would happen.

Highest Rates In 8 Months

Freddie Mac released its weekly mortgage market survey earlier today (see the left sidebar) , which shows that the average 30-year mortgage is 1/8% higher today than it was a week ago (5.21% this week vs. 5.08%) and the highest its been since the middle of last August.

Now the big unknown is whether this is the start of a continued climb to even higher rates or just Read the rest of this entry »

Written by Rod Herman | Discussion: No Comments »

6 Big Real Estate Changes For Benicia-Vallejo Home Buyers & Sellers This Month

April 5th, 2010 categories: Buying, Foreclosures / Short Sales, Loans / Financing, Selling, The Economy

Big ChangesIf you’re planning to buy or sell a home in Benicia, Vallejo or even anywhere else in Solano County, you may need a scorecard to keep track of all the changes that either already have occurred or will take place by the end of April.

I’ve been a real estate agent since 1995. And before that I worked in the title and new homes sectors of our business — dating all the way back to 1978. And in all the years I’ve been in the real estate business, I can’t remember another time when this many changes occurred in one single month.

So if you’ve got your scorecard ready, here’s a quick overview of some of the changes that are taking place in April: Read the rest of this entry »

Written by Rod Herman | Discussion: No Comments »

Is The Party Over For Low Mortgage Rates?

March 31st, 2010 categories: Buying, Loans / Financing, The Economy

March 31 - Uncle SamWill Rates Skyrocket As Some Previously Predicted?


Today marks the end of an unprecedented era for the mortgage market.

That’s because this is the final day of the Federal Reserve’s 14-month program to buy up mortgage-backed securities (MBS) — a practice that has kept mortgage rates down in the 5-percent-and-below range.

The Fed’s MBS purchase program was initiated by the government in order to keep mortgage money flowing at the time our economy was suffering through its darkest hours.

Buoyed by a consensus that the economy was on the mend, last fall, the government proclaimed that it would end its MBS buy-back program by the end of the first quarter of 2010.

In other words: today.

A New Era Starts Tomorrow

So starting tomorrow, MBS purchases will fall on the shoulders of regular investors, which means that mortgage rates will again be determined by the free marketplace, without any governmental support. Read the rest of this entry »

Written by Rod Herman | Discussion: No Comments »

BofA Will Slash Loan Balance By 30% For Some Underwater Borrowers Starting In May

March 28th, 2010 categories: Foreclosures / Short Sales, Loans / Financing, The Economy

Pull QuoteBank of America just announced a new loan modification program that could help hundreds if not thousands of underwater Solano County homeowner.

This represents the first attempt by a major bank — and they don’t get much bigger than banking giant BofA — to slash an underwater borrower’s principal rather than simply reducing the interest rate for a period of time.

BofA’s newly announced program is slated to start in May and it’s not available for every BofA borrower. Read the rest of this entry »

Written by Rod Herman | Discussion: 1 Comment »

Is The Party Over For Local FHA Borrowers?

February 13th, 2010 categories: Buying, Loans / Financing

StreamersBig Change For Benicia-Vallejo FHA Buyers Starting Monday


The party may not necessarily be over FHA borrowers just yet, but starting Monday, one of the big advantages that FHA borrowers have enjoyed for the past 9 months goes away.

I’m talking about the ability for a lender to send out their favorite appraiser in hopes of making sure nothing goes awry in the buyer’s attempt to buy the home of their dreams.

Come Monday, all FHA appraisers will have to follow many of the same rules that appraisers on conventional (Fannie Mae/Freddie Mac) loans have been following since last May.

New Appraisal Policy Starts Feb. 15

The new FHA policy is supposed to help ensure that lenders provide financing based on the true market value of the home rather than on a potentially trumped-up/inflated appraisal. Read the rest of this entry »

Written by Rod Herman | Discussion: 2 Comments »

Suisun Helping First-Time Home Buyers With Zero Interest Loans

February 5th, 2010 categories: Buying, Loans / Financing, Suisun City

Up To 25% When You Buy A Suisun Foreclosure


If you’re a first-time buyer looking to buy a foreclosed property, Suisun City has a program that might increaseRaining money your buying power by opening the door to homes you might otherwise never have been able to afford.

I’m talking about their First Time Home Buyer program, which not only helps those looking to get into their first home, but also helps prevent neighborhood blight at the same time.

The basic details:

  • It’s a “silent second” mortgage, with deferred payments and no interest.
  • You can borrow up to 25% of the value of the home.
  • You must purchase a foreclosure (or a short sale that’s already in foreclosure).
  • When you sell, you repay the loan PLUS the equivalent percentage of the home’s accrued appreciation.
  • To qualify, your household earnings must not exceed 120% of the area’s median income.
  • Homes must be located within Suisun’s Redevelopment District.

Here are the current income limits, which are based on the number of people in your household. Read the rest of this entry »

Written by Rod Herman | Discussion: No Comments »

New 3.5% Seller Credit For Some Solano Buyers…But You Have To Close By April 30

January 29th, 2010 categories: Benicia, Buying, Fairfield-Gr Valley, Foreclosures / Short Sales, Loans / Financing, Solano, Suisun City, Vacaville, Vallejo

If you’re planning to buy a home in Benicia, Vallejo or any other Solano or Contra Costa County city we serve, you might want to focusClock-Money on a Scale your eyes on Fannie Mae-owned homes for the next month or two.

For yesterday, Fannie announced a new incentive program which will provide up to a 3.5% credit to cover closing costs or a combination of credits & new appliances for qualified buyers who purchase a Fannie Mae-owned home between now and the end of April.

The details:

  • The offer must be accepted on or after Jan. 28, 2010
  • Escrow must close by April 30, 2010.
  • Buyers must be owner-occupants (no investors)
  • Qualified buyers get an incentive worth up to 3.5% of the cost of the home
  • The incentive can be used to cover closings costs, new Whirlpool appliances or a combination of the two

So, on a $250,000 home, for example, if you qualify for the full 3.5% credit, you could Read the rest of this entry »

Written by Rod Herman | Discussion: No Comments »