Hello, and welcome to Real Estate Reality Radio. The most important hour of radio every Friday from 9 to 10 on WBCB 1490 am. Thank you for joining us. For those of you who are new to the show I have spent the last 40 years in the real estate industry both as a realtor and a mortgage banker. The show is dedicated to dispelling the myths associated with Real Estate and finance in your marketplace.
Within every market there are obstacles and solutions on the path to tremendous opportunities. I believe that most people are looking for practical advice. Please feel free to call 215-740-8999 or visit peterbuchsbaum.com.
Please join us live on the web at www.wbcb1490.com or on your FREE app Tune In Radio from 9:00am to 10:00 am every Friday.
So last week we were joined by Jay Blumenthal the tax collector from Abington Township. Jay was successful in his bid for re-election by a wide margin.
This week’s news has been virtually non-existent regarding real estate and mortgages. The stuff coming down the pike has some interesting side shows going on. First as of November 15th Fannie Mae and Freddie Mac will require a minimum of 5% down on a loan. This is a tightening from the 3% they were requiring. They claim they are getting tighter so that more private money flows into mortgages. Seriously? The next big thing is that the CFPB is now attacking real estate offices and the management agreements with service providers like lenders and title companies. This will hopefully open up some fairer playing fields in the near future. A little more open market opportunities for the little guy to get a little more market share. Finally come January 10th the qualifying for a loan will be a little harder. That’s right they are reducing the percentage of your income that can go to your housing payment and other debts. It sounds small the reduction is from 45% to 43% but the ramifications are pretty far reaching from my world. If people looking at homes qualify for less mortgage money the values will need to adjust or stay stagnant.
Today Eddie and I are on our own to discuss the new normal again.
Please join us live at www.wbcb1490.com for the open discussion about Fannie Mae and Freddie Mac requiring 5% down.
Each week we discuss the myths of the mortgage market. It is not about rate. A higher rate with no mortgage insurance may provide a lower payment.