Archive for the 'Homebuying' Category

Rates are even lower and tax credits may be extended

July 1st, 2010

Written by Frost Mortgage

It’s a busy week in the news for potential homebuyers.

First, both 15-year and 30-year loans hit record lows for the second week in a row.

Second, as Reuters reports, the tax credit extension has passed a key hurdle:

The House backed by a vote of 409-5 a measure to extend the closing deadline to September 30 for buyers who already met the April 30 deadline to have a signed contract. The current deadline requires those buyers to close the transaction by June 30 to receive the $8,000 tax credit for first-time homebuyers.

The measure must also go before the Senate for approval.

Rates are dropping and home sales are also down.

What this means is an exceptional window of opportunity for those looking for a new home. Please contact one of our loan officers today and allow us to help you find out what is available to you. We think you’ll be glad you did.

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FHA: A range of creative options for borrowers

June 30th, 2010

Written by Frost Mortgage

The Federal Housing Administration (FHA) helps prospective borrowers in a wide range of ways. Frost Mortgage is a huge fan of the FHA program; in 2009, for instance, we were named No. 2 in America for FHA fundings by Mortgage Originator Magazine, and we’ve consistently been the top FHA lender in our home state of New Mexico.

CreditLoan.com has a great article on some of FHA’s main programs, including loans for

• First homes,
• Fixer-uppers,
• Reverse mortgages,
• Energy efficiency, and
• Manufactured or mobile housing.

We can help you with any of these needs–we’re FHA experts. Please call one of our experienced loan officers today for more information on how FHA programs can help you fund your next move.

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More light at the end of the tunnel

June 16th, 2010

Written by Frost Mortgage

It has been a long, hard slog, but we’re seeing increased confidence that the worst may be over. This week, for instance, Reuters reported, “A strong global economic recovery is under way, and is unlikely to be thrown off course by European debt woes or the improbable event of the bursting of an asset bubble in China, a top Federal Reserve official said on Monday.” That followed earlier remarks from Federal Reserve Chairman Ben Bernanke, who said European debt would probably only impact the U.S. economy in a “modest” way.

Another report this week found that “U.S. home prices were trending up in 155 out of 384 metro areas” thanks to “optimism that a sustainable economic recovery is underway.” And as our President, Greg Frost Sr., noted recently, “Over time, home prices across all states have risen at average annual appreciation rates ranging from the high 3’s to over 7.5%.”

We never recommend trying to “time the market.” It’s just too unpredictable for that. Instead, we have to look at sound financial practices with a long-term view in mind. We’re glad to see signs that the national mood is returning to normal.

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National Home Values

June 15th, 2010

Written by Greg Frost

The housing market continues to do battle with strong headwinds. Unemployment hovering at the double digit levels, disruptive appraisal requirements, more challenging loan underwriting and in many areas, foreclosure or distress sales exerting their negative influence. On the bright side, for buyers, lower prices combined with historically low interest rates have pushed true affordability to record levels. Here are a few other points to consider:

1. While falling values predominate across the country, there are only six states where values fell by more than 10% over the last year.
2. Unlike other investments, housing puts a roof over your head. That has always been its primary function. Yet, along with that benefit it is still an investment and in comparison to most others, it has compared favorably. Over the last 5 years, the vast majority of states still show positive appreciation with half even showing double digits. The same can not be said for the stock markets.
3. Over time, home prices across all states have risen at average annual appreciation rates ranging from the high 3’s to over 7.5%.

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Continuing hints of better news

June 9th, 2010

Written by Frost Mortgage

DENVER, CO–(Marketwire – June 8, 2010) –  Integrated Asset Services®, LLC (IAS®) (www.iasreo.com), a leader in default management and residential collateral valuations, today released the latest IAS360® House Price Index (HPI) (http://www.iasreo.com/ias360_update.html). Based upon the timeliest and most granular data available in the industry, the benchmark for national house prices gained 0.9% in April.

via U.S. Housing Prices Turn Positive in April.

The West region was up 1.1 percent, according to their report. Even if this does reflect the last of the federal tax credits, we’re encouraged that we could be looking at better times to come.

We hope it helps with purchaser confidence, but we’ve consistently said you can’t time the market. If you’re in the market for a loan or you’re considering making a move up in the mortgage business, give us a call and we’ll help you figure out what the right move is for you today.

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Video: Catch the latest dish on our new commercial

June 3rd, 2010

Written by Frost Mortgage

Here at Frost, we believe there are a few fundamental things that bring true joy to life. One is our homes, of course. Another is our food. That’s why we’ve become such big fans of New Mexico’s Hot Chefs. Have a look and then give us a call to see what we can whip up for you.

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Final days for ’seller concessions’

June 1st, 2010

Written by Frost Mortgage

The writing is on the wall for funds for homebuyers from sellers that can pay for some services and taxes in the transaction. As the Washington Post explains,

Say you’re buying a $200,000 house. If you are using FHA [Federal Housing Administration] financing under current rules, you can structure the contract so that the seller agrees to pay at settlement all closing costs and even the cost of some needed repairs, up to 6 percent of the price, or $12,000. On a $400,000 house, allowable concessions go to $24,000. That’s huge, especially if you have to struggle to come up with a 3.5 percent down payment and you’re not sure where you’ll find the closing and repair money.

Contrast that with using Fannie Mae or Freddie Mac conventional financing, in which seller concessions generally are limited to 3 percent. For many buyers, the extra negotiating flexibility built into the FHA program makes the choice of programs a no-brainer.

Sometime this summer, though, seller concessions will be cut to a maximum 3 percent. The precise timing is unknown because the announcement had not been made in the Federal Register, but the message is clear: Act now if the concession affects your deal.

We can help. Frost Mortgage is a “Full Eagle” FHA expert. Please contact one of our experienced loan officers today and we’ll quickly help you work through any questions. Because at Frost Mortgage, we don’t just close loans–we open doors.

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‘Qualified mortgages’ to be exempt from new risk requirement

June 1st, 2010

Written by Frost Mortgage

The recent “Wall Street Reform” bill required that 5 percent of a mortgage be retained as a buffer against risk. Fortunately, as National Mortgage Newsreports, a measure passed in May amended that requirement to exempt “qualified mortgages” (subscription required)–those that are generally fully documented and include 20 percent down and mortgage insurance. We agree with Sen. Johnny Isakson, one of the co-sponsors of the bill, who said, “Risk retention is not the cure-all for good lending–underwriting is.”

If you’d like to join a mortgage group that values smart thinking and solid principles like these, please look into our Branch Partner Opportunities. We’re always looking for qualified new partners for this industry-leading offering.

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'This is going to be the year for e-mortgages'

May 13th, 2010

Written by Frost Mortgage

National Mortgage News reports on the rise of ‘e-mortgages’ (subscription required), in which documents are stored and submitted electronically. The article focuses on Xerox Mortgage Services’ “e-vault” product, which “leverages industry standards and platforms, including the Mortgage Industry Maintenance Standards Organization and the MERS eRegistry, making the system agnostic to document provider or closing platform. In addition, the e-vault has undergone integration testing with Fannie Mae’s e-mortgage delivery system, offering Fannie Mae sellers a streamlined approach to delivering e-mortgages.”

A Xerox vice president is quoted as saying, “We’re big believers that this is going to be the year for e-mortgages.”

At Frost Mortgage, we’re also big believers in technology (as evidenced by our participation in social media). If you’re interested in joining us on the cutting edge, please visit our Branch Partner Opportunities page and then call us.

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Mortgage legend Greg Frost live on Twitter 5/10

May 7th, 2010

Written by Frost Mortgage

Frost Mortgage President Greg Frost will inaugurate #FrostMortgageMonday, a live interactive chat, on May 10 at 11:30 Mountain Time.

Whether you’re a homebuyer with a mortgage question or a top producer, broker or loan officer looking for industry insights, this will be a unique opportunity to interact with an industry legend.

Greg has been the #1 residential Mortgage Lender in New Mexico since 1985 and is consistantly ranked by Mortgage Originator Magazine among the top 20 Mortgage Originators in America.  Greg is also noted as being the first $Billion Dollar$ Loan Originator, and he is a renowned speaker, trainer and consultant.

Click here to follow Greg Frost on Twitter.

You can also read more about the use of “hashtags” like #FrostMortgageMonday on Twitter or visit TweetChat for an easy way to follow the conversation.

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