As Rents Increase, Buying May Be Better
Although home prices have been increasing, so too have rent prices. So with interest rates as low as they are, it may be better, financially, to purchase a home than to continue to rent.
Even former HUD secretary Shaun Donovan has spoken out on the issue and said that the rate at which rents are rising is the worst the country has ever known.
Image via flickr/Phil Sexton
When Looking to Buy, Know Your Income
It likely comes as no surprise that when an underwriter is reviewing an individual’s mortgage application, income plays a huge factor.
“We want to see a history of income that’s documented and has a likelihood to continue,” says Arlene Allert Maloney, Senior VP of Wells Fargo Home Mortgage.
And for individuals with lower incomes, all is not lost. Allowing your income to go further by paying off debt will make you a more attractive candidate.
Image via flickr/LendingMemo
FHA Commissioner Carol Galante Resigns
The Mortgage Bankers Association has confirmed that Carol Galante has resigned as the commissioner of the FHA.
David H. Stevens, president of the MBA said in a press release that her departure is a "great loss for the industry as well as to HUD."
Galante has accepted a new position at the University of California, Berkley.
Image via flickr/Dave Kliman
Fannie Mae Survey: Better Financial Outlooks Could Improve Housing Market
A new survey conducted by Fannie Mae revealed that the number of Americans who believe it's a good time to buy a home and the number of Americans who believe it's a good time to sell a home are evening out. This could indicate a better balance between supply and demand.
In the month from June to July, those favoring selling dropped from 70 to 67 percent, while those favoring buying jumped from 40 to 43 percent.
Image via flickr/james.thompson
State with Lowest Mortgage Interest Rate: Rhode Island
Rhode Island homebuyers are the luckiest in the nation when it comes to mortgage interest rates. Anyone looking to buy a house in the nation's smallest state can an expect an interest rate of about 3.4 percent, which is .35 percent lower than the national average.
Nebraska, on the other hand, has the highest average at 4.1 percent.
Image via flickr/401k limits
Three Men Charged in $18.5M Mortgage Fraud Scheme
Two men from California and one from New York were charged in connection with an alleged $18.5 million mortgage modification fraud scheme.
U.S. officials believe this may be the largest charge of its kind.
The three men allegedly falsely led more than 8,000 homeowners in all 50 states to believe that they were pre-approved for lower mortgage rates via a company called Home Affordable Modification Program.
Image via flickr/.v1ctor Casale.
Clintons Renting Hamptons Home for $100K
Bill and Hillary Clinton are renting a home in the Hamptons for three weeks this summer for $100,000.
The home is located in Amagansett and is owned by private art collector Andre Nasser and his wife Lois.
This year's rental is actually a downgrade from last year, when the former first couple paid $200,000 to stay in a home in Sagaponack.
Image via Twitter/HillaryClinton
Wells Fargo Loosens Standards for Jumbo Mortgages
Reuters reports that Wells Fargo, the largest U.S. mortgage lender, has eased up on its requirements on some high-end mortgages. The new lax rules affect only the fixed-rate "jumbo" mortgages that Wells Fargo acquires from other banks.
In late July, Wells Fargo lowered its minimum credit score requirement for these loans from 720 to 700.
The hope is that these new, more relaxed rules with help combat the nation-wide drop in mortgage volumes.
Image via Pixaby/193584
Homeowners Staying Put This Summer
Although the number of houses for sale was expected to surge this summer, the prediction has not materialized. As a result, the current supply of homes is low and their selling prices are high.
According to a report released by CareLogic on Tuesday, many homeowners are " staying put and waiting for better economic times and higher prices in the future."
Image via flickr/flimin
Austin Voted Best City for Millennial Homebuyers
Austin, Texas, was voted the top U.S. city for millennial homebuyers by CNN.
Austin is home to the South by Southwest (SXSW) festival and boasts a median home price of $226,000. The city's 4.2 percent job growth ensures lots of jobs with high incomes.
No wonder 110 new people are moving to Austin every day.
Image via flickr/eschipul
