Real E State of the Union

Regarding the tax credit for housing, it appears that President Obama now has the bill on his desk this evening to extend the closing date for eligible first time and move up buyers who went under contract prior to April 30, 2010, but did not close yesterday on their new purchases; that extension will be until September 30, 2010.

 Rates are officially at a 45-year low, and refinancing is at as brisk a pace as anyone can recall.  These rates are in many cases lower than the “Henry Paulson 4.5% mortgage”.  Check in with us for the details.

 We expect FEMA to be back in the business of issuing new flood insurance policies at attractive premiums as early as next week.

 Many of our partners have begun to adapt/adopt to the new reality that the mortgage lender is in charge of all the fees at application and closing, and most importantly many have realized that the process now takes a good deal longer due to Congress’s wish not to rush borrowers.

 Jumbo money is once again plentiful and very attractively priced.  We priced a 5/1 interest only ARM recently under 4%.

 Second mortgages, and home equity lines of credit appear to have re-emerged.  For the “right borrower, in the right situation” these loans may now allow 90% total financing.

 Mortgage insurance companies are becoming more aggressive in insuring risks.

 FHA’s CEO today announced that “30-day” delinquencies were down a fair bit in their portfolio from the month earlier.

 Reverse mortgages, where you never make a payment during your lifetime and the loan is insured by the FHA, are now at a 5.5% fixed rate with no term.  That is truly amazing and a great way to go if you are 62 or older.

 We’ve seen many new buyers of homes that may not have traditional credit or even be a US Citizen or a Green Card holder…guess what?  They are now “lendable”.  Crazy, right?

 If you live on the east coast and you bought a home in 2006/2007 or know what the value of your home was at that point in time, it’s a pretty fair bet it’s worth 25%-30% less than that number.  This “adjustment” for many has been enormously painful and difficult.  There are several “mortgage solutions” for folks who may now owe more than their homes are worth, including a program that we are beginning to actually see work called Fannie Mae DU Refi Plus.

 June was our busiest month in many years, and July is shaping up to be even better than June.

 Please let us know how we can help you navigate the market for financing.

 Best wishes for a relaxing and safe holiday weekend!

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