by Marion Trent | Aug 26, 2014 | Mortgage Loans, Mortgage News
FIRST TIME HOME BUYERS IN DALLAS- FORT WORTH Texas metro markets ranked high for first-time buyers, even though our markets are very hot right now, and home prices are rising at a faster pace than the national average. The positives for markets like Houston, Ft. Worth/Arlington and Dallas are that there is strong employment growth and plenty of buildable land. New construction would be an opportunity for first-time buyers, whereas the premium would be much higher in states like California, where there is little space to increase supply. WHY RETIRE IN DFW? Dallas – Fort Worth markets continually rank as best home buyer markets in all categories, not just first-time home buyers. Our area ranks in the top ten as the best place to retire in the country. The main reasons for choosing Dallas and Fort Worth, Texas to retire is there is NO STATE TAX and the low cost of living and affordable housing appeals to many retirement age people who have trouble maintaining a comfortable life style in more expensive states, such as New York and California. Home buyers nearing retirement age are perfect candidates for specialized mortgage loans. Call Global Lending Solutions for customized loan solutions, or fill out our online application today for a quick response....
by Marion Trent | Aug 25, 2014 | Mortgage News
Fair Isaac Corporation is releasing a new update to its widely-used FICO scoring model. The newer version is said to be “more predictive” and easier on customers with limited credit history. One of the biggest changes is more lenient on medical collection items. In the newest FICO version, a model named FICO Score 9, medical accounts which have gone into collection will not affect consumer credit scores with nearly the same impact as non-medical collection items. Consumers whose only negative accounts are medical collections should expect their FICO scores to rise 25 points. Another major change is linked to customers with limited credit history. In the new FICO Score 9 scoring model, a broader set of variables will be used to determine the borrower’s likelihood of default as compared to prior versions of the FICO model. This change is expected to help first-time home buyers with a history on of-time payments; and other borrowers who carry few monthly debts. Another great addition is how the FICO Score 9 scoring model will change the way that credit bureaus look at paid collection items. In prior credit scoring models, paying an item in collection has been known to harm a person’s credit score by “bringing the account current”. The new algorithm is expected to bypass such items, which should give a boost to borrower credit scores. The new scoring model will help boast consumers’ credit and will benefit applicants who are applying for mortgages. However, it is somewhat unclear if mortgage lenders will adapt the new scoring system to their underwriting repetroire. Stay tuned for more information regarding the updated FICO Score 9 model, or call us for more...
by Marion Trent | Aug 24, 2014 | Mortgage News, news
HUD No. 14-101 Patrick Rodenbush (202) 708-0685 http://www.hud.gov/news/index.cfm FOR RELEASE Thursday August 21, 2014 OBAMA ADMINISTRATION SETTLEMENT WITH BANK OF AMERICA WILL STRENGTHEN FHA FUND, PROVIDE BILLIONS IN CONSUMER RELIEF Washington – The Obama Administration today announced an almost $17 billion global settlement with Bank of America. $1 billion of the total settlement amount resolves claims arising from allegations of fraud involving certain Federal Housing Administration (FHA)-insured single-family mortgage loans and a failure to perform under its servicing contract with the Government National Mortgage Association (Ginnie Mae). Under the terms of the settlement, Bank of America will pay $800 million to resolve the claims relating to FHA and $200 million to Ginnie Mae. The remaining nearly $16 billion of the total settlement amount resolves fraud claims involving the pooling of residential mortgage backed securities, collateralized debt obligations, and other claims by the United States, along with the States of California, Delaware, Illinois, Maryland, New York, and the Commonwealth of Kentucky, and includes $7 billion in consumer relief with a focus on borrowers that were in the hardest-hit areas during the housing crisis. “Today’s settlement with Bank of America is another important step in the Obama Administration’s efforts to provide relief to American homeowners who were hurt during the housing crisis,” said U.S. Department of Housing and Urban Development (HUD) Secretary Julián Castro. “This global settlement will strengthen the FHA fund and Ginnie Mae, and it will provide $7 billion in consumer relief with a focus on helping borrowers in areas that were the hardest hit during the crisis. HUD will continue working with the Department of Justice, state attorneys...
by Marion Trent | Aug 24, 2014 | Home Loans, Mortgage Loans
Can’t Decide Whether to Pick a 30 Year or 15 Year Fixed Rate Mortgage? These tips may help you decide. Most people who easily decide on a 15 year fixed rate mortgage are at least 40 years old.The reason behind that is obvious. People in their 40s, 50s and up are willing to pay more on their monthly mortgage to pay off their mortgage loan quicker. Besides that, the 15 year fixed rate client has usually saved a fair amount of money or has seen a considerable increase in their salary history over the years. Someone in their 20s and 30s is usually starting a family and is putting money aside for their childrens’ educational fund and other things that are needed right away, so there is less money to go around. A 30 year fixed rate mortgage is perfect for young families because monthly payments are lower and, generally speaking, younger people have more time to pay off their mortgage. Another deciding factor is how self-disciplined the borrower is at saving money. The less disciplined, the better a 15 year mortgage is for that person. or family. Lastly, how close is the borrower to retirement? The closer the borrower is to retirement age, the better a 15 year fixed rate mortgage is. If you can’t decide, call Global Lending Solutions for a more detailed analysis of your financial goals and...
by Marion Trent | Aug 21, 2014 | Home Loans, Mortgage Loans
The Mortgage Bankers Association’s latest forecast says the 30-year fixed rate could average 4.9 percent by the third quarter and reach 5 percent by the end of 2014. But there’s a good chance rates will remain stable through the summer, says Peter Grabel, senior mortgage loan originator for Luxury Mortgage Corp. in Stamford, Connecticut. “I don’t feel there’s any reason for rates to change a lot,” he says. Still, if you like the rate you have today, don’t waste time. “They are not that much off all-time lows. There’s only room for them to go in one direction and that’s up.” Getting a mortgage these days is obviously not as easy as it was during the housing boom, when pretty much anyone could get a loan. But after years of tightening, it seems like the standards are loosening up a bit. “We are seeing underwriters have a little more flexibility with some common-sense issues,” Grabel says. “That’s not a suggestion we are going back to the old days.” Standards have loosened mostly for larger loans, or jumbo loans, because they are not the types of loans that get sold to Fannie Mae and Freddie Mac. The institutions have their own guidelines and lenders must follow them if they want to sell the loans after they issue them. FHFA to Change Guidelines Mel Watt, the new head of the Federal Housing Finance Agency, recently said his office will change some of the guidelines to allow lending to borrowers with slightly lower credit scores. The FHFA oversees Fannie and Freddie. “Mel Watt reversed course for the first time in many years...
