Tuesday, December 29, 2015

TRID Causing Noticeable Delays -Ellie Mae

TRID Causing Noticeable Delays -Ellie Mae

The new RESPA-TILA Know Before You Owe regulations, commonly called TRID, was cited as a probable reason for a three day increase in the average time it took to close a mortgage loan in November compared to October.  Ellie Mae said the average application-to-closing time of 49 days was the longest time to close a loan since February 2013.  Conventional and FHA loans each took 49 days while VA loans took an average of 50.

Ellie Mae's Origination Insight Report also showed the average FICO score on loans originated in November was 721, a decrease of 1 point from October and the sixth month the average score has declined.  Average FICO scores for all loans has dropped 10 points since January.  Ellie Mae said the driver of the November reduction appears to be a decline, for the second month in a row, of FHA scores.

Closing rates for all loans reached their highest point, 68.4 percent, since Ellie Mae began tracking data in August of 2011. The closing rate on purchase loans increased to 72 percent.

Loans for home purchases had a 53 percent share of all originations during the month - down 2 percentage points from October.  The refinancing share rose to 46 percent from 44 percent.

 "We are beginning to see the anticipated impacts of the Know Before You Owe changes that went into effect in October," said Jonathan Corr, president and CEO of Ellie Mae. "The time to close loans has crept up to 49 days, a 3-day increase over October, while the closing rate on purchased loans increased to 72 percent. Additionally, we've seen the percentage of refinances increase to 46 percent of all closed loans, most likely driven by a recent dip in rates over the last three months since the 2015 high point in August."

Conventional loans made up 64 percent of all originations while FHA loans comprised 23 percent, both unchanged from the previous month.  The VA share ticked up one percentage point to 10 percent.
The Origination Insight Report mines its application data from a sampling of approximately 66 percent of all mortgage applications that were initiated on the Encompass® all-in-one mortgage management solution.

If you are looking for a Realtor or Mortgage Originator in Southeastern Wisconsin that can close your purchase on time contact Jodi Toebe REMAX Realty Center!

Friday, December 25, 2015

FSBO, List Again or OTM? A Seller’s Dilemma


At the end of December, in every region of the country, hundreds of homeowners have a tough decision to make. The ‘listing for sale agreement’ on their house is about to expire and they now must decide to either take their house off the market (OTM), For Sale by Owner (FSBO) or list it again with the same agent or a different agent.
Let’s assume you or someone you know is in this situation and take a closer look at each possibility:

Taking Your Home off the Market

In all probability, after putting your house on the market and seeing it not sell, you’re going to be upset. You may be thinking that no one in the marketplace thought the house was worthy of the sales price.
Because you are upset, you may start to rationalize that selling wasn’t that important after all and say,
“Well, we didn’t really want to sell the house anyway. This idea of making a move right now probably doesn’t make sense.”
Don’t rationalize your dreams away. Instead, consider the reasons you decided to sell in the first place. Ask your family this simple question:
“What made us originally put our home up for sale?” 
If that reason made sense a few months ago when you originally listed the house, chances are it still makes sense now. Don’t give up on what your family hoped to accomplish or on goals your family hoped to attain.
Just because the house didn’t sell during the last listing contract doesn’t mean the house will never sell or that it shouldn’t be sold.

Re-Listing with your Existing Agent

For whatever reason, your house did not sell. Perhaps you now realize how difficult selling a house may be or that the listing price was too high, or perhaps you’re now acknowledging that you didn’t exactly listen to your agent’s advice.
If that is the case, you may want to give your existing agent a second chance. That’s a perfectly okay thing to do.
However, if your agent didn’t perform to the standard they promised when they listed your home you may want to either FSBO or try a different agent.

For Sale by Owner

You may now believe that listing your house with an agent is useless because your original agent didn’t accomplish the goal of selling the house. Trying to sell the house on your own this time may be alluring. You may think you will be in control and save on the commission.
But, is that true? Will you be able to negotiate each of the elements that make up a real estate transaction? Are you capable of putting together a comprehensive marketing plan? Do people who FSBO actually ‘net’ more money?
If you are thinking about FSBOing, take the time to first read: 5 Reasons You Shouldn’t For Sale by Owner.

List with a New Agent

After failing to sell your home, you may no longer trust your agent or what they say. However, don’t paint all real estate professionals with that same brush. Have you ever gotten a bad haircut before? Of course! Did you stop getting your hair cut or did you simply change hair stylists?
There is good and bad in every profession—good and bad hair stylists, agents, teachers, lawyers, doctors, police officers, etc. And just because there are good and bad in every line of work doesn’t mean you don’t call on others for the products and services you need. You still get your haircut, see a doctor, talk to a lawyer, send your kids to school, etc.

Bottom Line

You initially believed that using an agent made sense. It probably still does. Contact a local real estate professional and discuss the possibilities.  Contact Jodi Toebe RE/MAX Realty Center Serving All of Southeastern Wisconsin!

Thursday, December 24, 2015

Where Are Mortgage Rates Headed? This Winter? Next Year?



Where Are Mortgage Rates Headed? This Winter? Next Year?

The interest rate you pay on your home mortgage has a direct impact on your monthly payment. The higher the rate the greater the payment will be. That is why it is important to look at where rates are headed when deciding to buy now or wait until next year.
Below is a chart created using Freddie Mac’s October 2015 U.S. Economic & Housing Marketing Outlook. As you can see interest rates are projected to increase steadily over the course of the next 12 months.

Where Are Mortgage Rates Headed? This Winter? Next Year? | Simplifying The Market

How Will This Impact Your Mortgage Payment?

Depending on the amount of the loan that you secure, a half of a percent (.5%) increase in interest rate can increase your monthly mortgage payment significantly.
According to CoreLogic’s latest Home Price Index, national home prices have appreciated 6.4% from this time last year and are predicted to be 4.7% higher next year.
If both the predictions of home price and interest rate increases become reality, families would wind up paying considerably more for their next home.

Bottom Line

Even a small increase in interest rate can impact your family’s wealth. Let's meet to evaluate your ability to purchase your dream home.

For a FREE Preapproval call Jodi Toebe Total Mortgage Service, Servicing All of Wisconsin! NMLS#251066

Wednesday, December 23, 2015

Why Did Home Sales Drop So Dramatically Last Month?


Why Did Home Sales Drop So Dramatically Last Month?

Yesterday, the National Association of Realtors (NAR) released their latest Existing Home Sales Report which covered sales in November. The report revealed that sales:
“…fell 10.5 percent to a seasonally adjusted annual rate of 4.76 million in November (lowest since April 2014 at 4.75 million)…”

That revelation gave birth to a series of industry articles, some of which quoted pundits questioning whether the housing market was slowing. In actuality, there is one rather simple explanation to much of the falloff in sales last month. It is likely the implementation of the “Know Before You Owe” mortgage rule, commonly known as the TILA-RESPA Integrated Disclosure (TRID) rule, which went into effect on October 3. These regulations caused house closings to be delayed by an extra three days in November as shown in the graph below.

Average Days To Close | Simplifying The Market

Three days might sound like a minimal difference. However, since there are only approximately 20 days in a month that a closing would normally take place (Mondays through Fridays), losing three days constitutes well over 10% of all closings. These sales are not lost. They are just moved into the next month’s numbers. In a DS News article on the subject yesterday, Auction.com EVP Rick Sharga explained:
“The most likely cause for the weak sales numbers is a delay in processing loans due to the new TRID mortgage requirements imposed by the CFPB. This is the biggest change in mortgage document processing in many years, and there have been numerous reports within the industry of problems implementing the process and the new documentation that comes with it.”

So how is the housing market actually doing?

A better way to look at how well the housing market is doing is to look at the Foot Traffic Report from NAR which quantifies the number of prospective buyers that are actively looking for a home at the current time:

Foot Traffic Growing | Simplifying The Market

We can see immediately that demand to buy single family homes is increasing over the last few months - not decreasing.

Bottom Line

No matter what last month’s sales numbers show, the housing market is still doing well as demand remains strong.

Contact Jodi Toebe RE/MAX Realty Center if you are looking to buy or sell a home in Southeastern Wisconsin! 

Tuesday, December 22, 2015

Foreclosures in your State

Foreclosure Inventory Drops As Economy Improves [INFOGRAPHIC]

Foreclosure Inventory Drops As Economy Improves [INFOGRAPHIC] | Simplifying The Market

If you are interested in buying a foreclosure call Jodi Toebe RE/MAX Realty Center

Monday, December 21, 2015

Prank Pulled on Loan Office will leave you chuckling!

The Prank Pulled On This Loan Officer Will Leave You Chuckling… Or Cringing. Or Both.

mike-bell-authorBy Mike Bell  |  Read Bio

If pranking were an Olympic Sport, Ed Bassmaster would be a perennial gold medalist. The YouTube sketch comedian and prankster is just that good.
In this bit, which he appropriately calls ‘Ugly Face’, he pranks an unsuspecting loan officer who thinks he’s taking a mortgage loan application from a legitimate customer. Little did he know, his boss set him up.
Whether you’re in the mortgage industry or not, I think you’ll relate to how awkward this must’ve been for the poor loan officer. It’s all smiles in the end, though.

Contact Jodi Toebe RE/MAX Realty Center to help you through the Home Buying Process!

Friday, December 18, 2015

What is the difference in Sale Price and Lendable Value when buying or selling a home?

You Will Need to Sell Your Home Twice


A recent post on “The Home Story”, a site published by Fannie Mae, explained the difference between the price a seller may get for their home and the value an appraiser might assign the property.

The Sales Price

Of course, most sellers want to maximize the value they get for the house. However, the price they set might not be reflective of the other comparable homes in the neighborhood. As the article stated:
“People tend to view their homes emotionally, and that can become quickly apparent when they decide to sell.”
That doesn’t mean that the home won’t necessarily sell for that price.
A seller can set an asking price and actually have a buyer agree to that price. However, that value may not be necessarily in agreement with what most buyers are willing to pay. For example, one person can view a property, determine it is exactly what they are looking for and well worth the asking price, whereas another person could look at the same property and feel the asking price is too high.
Steven Corbin, Director of Valuation in Fannie Mae’s CPM Real Estate division gives an example:
“Someone may have driven by the property countless times, and they really want to live in that house. So in reality they may overbid for that property. This would be a situation where the actions of a specific buyer do not represent the actions of a typical buyer.”

The Appraised Value (or Market Value)

Fannie Mae explains what they look for when appraising the house:
“When a contract is established on a property, an appraised value is determined by a professional real estate appraiser. The appraiser works on the lender’s behalf to determine that value by taking many factors into consideration, including the neighborhood, the value of properties of similar size and construction, and even such things as the type of fixtures on the premises and layout of the floor plan.”
Corbin adds:
“From a lending perspective, a bank would want to know the probable price a typical buyer would offer for the property. That’s what an appraiser would set as the market value.”

The Challenge when Sales Price and Appraisal Value are Different

If the appraiser comes in with a value that is below the agreed upon sales price, the lending institution might not authorize the mortgage for the full amount a buyer would need to complete the transaction.
Quicken Loans actually releases a Home Price Perception Index (HPPI) that quantifies the difference between what sellers and appraisers believe regarding value. The HPPI represents the difference between appraisers’ and homeowners’ opinions of home values.
Currently, there is approximately a 2% difference between what homeowners believe their home to be worth and what appraisers value that same home. On a $300,000 sale that would be a $6,000 difference. That could be a challenge that might prevent the home sale proceeding to the closing table.
Quicken Loans Chief Economist Bob Walters recently commented on this issue:
“The more homeowners are in line with appraisers, the easier it will be to refinance their mortgage and easier for those looking to buy a home. If the two are aligned, it eliminates one of the top stumbling blocks in the mortgage process.”

Bottom Line

Every house on the market has to be sold twice; once to a prospective buyer and then to the bank (through the bank’s appraisal). In a housing market where supply is very low and demand is very high, home values increase rapidly. One major challenge in such a market is the bank appraisal. If prices are jumping, it is difficult for appraisers to find adequate comparable sales (similar houses in the neighborhood that closed recently) to defend the price when performing the appraisal for the bank.
With escalating prices, the second sale might be even more difficult than the first. Let's get together and discuss the market in your neighborhood and the best listing price for your home.

Contact Jodi Toebe RE/MAX Realty Center to help navigate you through the process and ensure your closing goes smoothly.  Jodi has 20+ yr mortgage lending experience and has had her Realtor License since 2007!

Monday, December 14, 2015

What is Ahead for Mortgage Rates?

MBS Day Ahead: Fed Rate Hike Week And What It Means For Rates

Roughly 3 months after the Fed's last stellar opportunity to enact its long-anticipated rate hike, we come to meeting that is all but certain to host their unfinished business.  The Fed has the green light, and moreover, no deterrent on the same scale as the late August global economic drama.  The absence of a rate hike this week would be an utter calamity, because the Fed's forward guidance (the stuff they say about where they think rates will go and when) would become utterly useless.   Folks would question their motives and intelligence.  Investors would lose a lot of confidence in the system.  In short, all hell would break loose.
Such hypothetical scenarios are moot, however, because until and unless we see such a crazy turn of events, they're too crazy to give any legitimate consideration. We'd do much better to discuss what the formality of the hike means at this point.
You'll be happy to know that, in the bigger picture, the hike is not the end of the world for mortgage rates.  While the last several "hiking cycles' also coincided with longer-term rates moving higher, the last cycle (that began in 2004), was the most gradual of those.  There we saw rates actually move lower at first and ultimately hold fairly flat by the end of the cycle. 
2015-12-14 fed vs 10s
There can certainly be some market volatility in the response, but no one really knows what to expect from that.  What we do know is that domestic bond markets have been doing as much as possible to "price in" a Fed rate hike.  They'll require additional convincing if they're going to be pushed higher in the sort of way that many financial news outlets espouse.  Ironically, a higher Fed Funds rate makes it increasingly difficult for the economy to generate the sort of momentum required scare up higher long term rates.  But then again, cooling the economy is sort of the point of a Fed Funds hike anyway.
Then there are the longer term trends in stocks and bonds.  As has been a popular topic of conversation from as early as September, what would it mean for bond markets if stocks ended up taking a big turn at the recent highs (the ones they can't seem to get back above)?  The flight of capital out of stocks has to go somewhere.  Maybe some would go to bonds...
2015-12-14 S&P
Then there are bonds themselves.  Never say never, but I will say that it's been a historically bad idea to bet against longer term momentum for that past 30 years that bonds have rallied.  In the following chart, notice that every major consolidation in 10yr yields (like the one we've just seen), has been broken with a move lower in yields. 2015-12-14 consolidations
While there is other economic data on the calendar this week, the focus is on Wednesday afternoon's Fed events.  These include the announcement itself as well as the release of the Fed's economic forecasts and the Press Conference with Fed Chair Yellen.

FNMA 3.0
100-15 : +0-00
FNMA 3.5
103-17 : +0-00
FNMA 4.0
105-31 : +0-00
2 YR
0.9150 : +0.0360
10 YR
2.1430 : +0.0107
30 YR
2.8790 : +0.0027
Pricing as of 12/14/15 7:30AMEST

Tomorrow's Economic Calendar
Tuesday, Dec 15
8:30 Core CPI index, sa *Nov243.70
8:30 Core CPI mm, sa (%)*Nov0.2 0.2
8:30 NY Fed manufacturing *Dec-6.00 -10.74
10:00 NAHB housing market indx *Dec63 62
Wednesday, Dec 16
7:00 Mortgage Market Index w/e424.1
8:30 Housing starts number mm (ml)*Nov1.140 1.060
8:30 Building permits: number (ml)*Nov1.150 1.161
9:15 Industrial output mm (%)Nov-0.1 -0.2
9:15 Capacity utilization mm (%)Nov77.5 77.5
14:00 FOMC rate decision (%)*N/A0.375
Thursday, Dec 17
8:30 Philly Fed Business Index *Dec1.9 1.9
8:30 Initial Jobless Claims (k)*w/e282


Saturday, December 12, 2015

The HSH Two-Month Mortgage Rate Forecast

The HSH Two-Month Mortgage Rate Forecast

Author: - HSH.com

October 30, 2015

Global economic concerns and persistently low inflation have put the Fed on hold, possibly for an indefinite period. The drag of weak manufacturing and a difficult export climate have trimmed the sails of the U.S. economy, even as it continues to perform, albeit at a lesser and more erratic pace.
At present, there are few available signals that growth or inflation is set to accelerate in a meaningful way; in fact, the present trend for growth seems likely to be closer to the sub-1 percent rate at which we began 2015 than the near 4 percent rate of the second quarter. Inflation is tougher to gauge, with some measures firm or firming while others are flat or falling, but suffice it to say that the Fed remains more concerned about deflationary prospects than inflationary ones.
It may be that these issues are fleeting, or at least likely to fade as we move forward into 2016 and beyond. However, for the purposes of our coming forecast period, their effects are both pronounced and influential, and we may end 2015 not much closer to "liftoff" for Federal Reserve policy than we began it. Slow (or no) growth, slow (or no) inflation, no Fed... and not much action for interest rates.
Just as most baseball teams have signed off their seasons with "Wait 'til next year!", it's a distinct possibility that this statement has come to apply to monetary policy, too.
In the news, much was made of the Fed's statement that closed the October 28 meeting. A subtle change to the language used to describe potential future policy action was the cause for interest; "In determining how long to maintain this target range" (for the federal funds rate) became "In determining whether it will be appropriate to raise the target range at its next meeting", which markets rightfully interpreted as a statement that a move in December remains a possibility; it does, but probably a small one at the moment.
We don't think this signals much by way of change in the likelihood of a move in December, but given that the Fed has made a number of allusions to the idea that any meeting could be in play for a rate change, this language update merely formalizes this sentiment. We expect that "next meeting" will become a more or less permanent fixture until rates get closer to historic norms, when something akin to "raise or lower" will likely replace it.
HSH.com FRMI Recap Graph
Our last forecast was somewhat dependent upon an expected move by the Fed in September. We now know now that the Fed made no change, and at the time of the last forecast, we took occasion to note: "If the Fed punts at the September meeting, we might see some downside for rates, but not much." This turned out to be exactly the case: Mortgage rates have retreated from levels we saw in August (when we wrote the last Two-Month Forecast) but only slightly, even as this small decline was sufficient to put us closer to the this year's lows for mortgage rates than highs.
At the time of the last writing, we thought that we'd see a range for HSH's FRMI of 3.90 percent to 4.27 percent. With the Fed stepping out of the picture, we tended toward the lower end of that range, and achieved a narrow 3.89 percent to 3.99 percent pairing. At the same time, we expected that the FRMI's 5/1 Hybrid companion would wander between a 2.92 percent to 3.22 percent set of bindings, and the markets produced just a 2.92 percent to 3.01 percent set to corral rates. Meanwhile, we called for the average for conforming 30-year fixed rate mortgages to bounce between barriers of 3.88 percent on the low end and 4.25 percent on the high, and were presented with a 3.88 percent and 4.00 percent paid of fences. The near-stasis for rates during the period was unexpected, but in itself isn't all that unusual, even in recent experience. We'll call the forecast successful, but perhaps only fair in its prescience.
HSH.com 5/1 ARM Recap Graph
Forecast Discussion
It seems to us that for the last few years, the economy has been much like a car in second gear; Hit the gas, and it takes off with a burst of strong acceleration, but as soon as the pressure on the throttle is lifted, the deceleration is quite pronounced. There's been precious little opportunity for simply lugging along at a low RPM in any higher gear, and every time it seems as though such a shift will come, some internal or external force exerts itself, and the economy remains in second gear.
Obviously, this presents a quandary, from both a business and monetary policy perspective. How to plan for future activity that, for at least a time, seems so likely to come... then doesn't? How to adjust policy for strong and possibly self-sustaining growth, the kind that foments greater price pressures, when it only comes for brief periods? The fact is, it's difficult (if not impossible) to do so, and this fits-and-starts process breeds the kinds of caution we see expressed in both growth and monetary policy at the moment. Yes, we are in an expansion, and a fairly long-dated one, too, but it continues to have such a tenuous feel that its durability remains in question even as we are years into it.
We are now at the portion of the program where a once fairly-certain Fed path has become rather uncertain. When we began 2015, we (and many others) expected a lift for rates in perhaps June; June became September, September has become December but the reality is that without a drastically different and stronger set of economic reports for October and November (not impossible, just unlikely) that we are probably looking at February for the first Fed change... if not beyond. The last couple of years have featured very soft starts, and even if the economy does pick up in the fourth quarter at a pace sufficient to put the Fed back in play for December, the repeated pattern of slow growth to start each of the past two years may give them a bit more caution than not about making a change.
With the economy seemingly in deceleration at the moment, there is almost zero chance of a lift in the short-term interest rates the Fed controls, and certainly not at next week's FOMC meeting. In fact, in recent weeks, there have again been heard some rumblings in the markets that the Fed might again need to consider reopening QE-style programs if the current economic slowness become more pronounced, or if inflation should retreat significantly further. That too is quite unlikely at this point, and certainly not a likely happenstance during the next nine weeks. The reality is that the markets are on their own for the foreseeable future and any moves in rates over the forthcoming forecast period will be data-driven. This will likely produce some volatility at times, at least relative to the pretty flat period though which we just passed.
Given the climate as we write this, we have little choice but to ratchet down the ranges we expect for rates over the next two months. Neither an accumulation of very solid economic data or a marked upturn in inflation readings is likely to move rates up by much, and any continued weakness (or even a continuation of the current subdued trend) would tend to see rates move lower than not, if only slightly.
Between now and the end of the forecast period, we think that HSH's FRMI may still have a little space to ease, so we'll set a bottom for the range here at 3.81 percent; leaving a little room for upside, the FRMI might not break past perhaps 4.08 percent even if we pick up some steam. The overall 5/1 Hybrid ARM should hold in a valley of 2.83 percent to 2.99 percent, and the conforming 30-year FRM should be restrained by borders of 3.82 percent and 4.09 percent, respectively.
This forecast will expire on January 1,2016. Amid the holiday revelry, why not stop back and see if the market gave us a present or a lump of coal? Also, given the holidays, we may not have a new forecast ready to go at that point, so this one could turn into a 10-week forecast as a result.

Friday, December 11, 2015

Comedian Hilariously Sums Up Why Real Estate Agents Are Basically Heroes

Comedian Hilariously Sums Up Why Real Estate Agents Are Basically Heroes

    lighterside-staff-authorBy Lighter Side Staff  |  S.D. Shank  |  Read More

    To some, real estate agents are considered the champions of their clients, trying to provide families with their little slice of the American dream. To others, they’re simply misunderstood.
    Either way, when it comes to helping us settle into the biggest investment of our lives, their value is immense. Fortunately, we get to take an open-house tour of their world with comedian John Mulaney!

    From start to finish you don’t want to miss this hilarious clip that delves into the lives of these stalwart guardians of home ownership.

    Via Quentin Forgues
    Call Jodi Toebe RE/MAX Realty Center, Oconomowoc, WI , Waukesha County.  Servicing Southeastern Wisconsin

    Thursday, December 10, 2015

    Realtors Reveal the Renovations That Really Pay Off at Sale Time

    Renovations that will pay back when you sell
    New roof: mtreasure/iStock; vinyl siding: James Brey/iStock
    Wood flooring: frentusha/iStock; garage door: KatarzynaBialasiewicz/iStock
    By Judy Dutton

    Realtors Reveal the Renovations That Really Pay Off at Sale Time

    While homeowners may dream of pulling off some nifty renovations in their kitchen, putting in a hot tub or maybe pulling together an awesome entertainment center, a new report by the National Association of Realtors® (NAR) finds that homeowners’ money would be better spent on other features.
    For NAR’s 2015 Remodeling Impact Report, Realtors ranked home improvement projects based on expected value at resale (without accounting for project price). Results revealed that the interior project predicted to yield the biggest bang for your buck is right under your feet: your floors. Refinishing hardwood floors will essentially pay for itself—an estimated 100% return on investment, according to Realtors.
    Other renovations that rank high on ROI include insulation upgrades (95% recovered), new wood flooring (91% recovered), and converting a basement to a living area (69% recovered).


    The report also found that renovations on a home’s exterior can also pay off in spades. According to Realtors, home buyers love a new roof, which will reap 105% of your costs at resale, followed by a new garage door (87%), new vinyl siding (83%), and new vinyl windows (80%).
    But renovations aren’t just about resale; homeowner also improve their homes so they can enjoy these upgrades themselves. To that end, the NAR report found that 64% of home buyers surveyed say they’ve experienced increased enjoyment in their home after completing a remodeling project. As for their main motives, 38% of homeowners said they wanted to upgrade worn-out surfaces, finishes and materials, while 17% wanted to add features and improve livability.
    Thirteen percent merely believed it was time for a change.
    “Realtors know that certain home upgrades and remodels can be beneficial to get more buyer eyes on a property, potentially bring in more offers or gain more equity from a home,” said NAR President Tom Salomone, broker-owner of Real Estate II Inc. in Coral Springs, FL. “But remodeling projects are just as valuable to homeowners who simply want to get more joy out of their dwellings.”
    If that isn’t reason enough to break out your tool kit, what is?

    Call Jodi Toebe RE/MAX Realty Center Oconomowoc, WI 262-352-0484 To help you guide you through how to sell your home quick for the best price!

    Tuesday, December 8, 2015

    You just got 3 mortgage rate quotes, all different! Which one should you believe?

    Mortgage Rate Surveys: Which Survey Can I Actually Believe?

    Mortgage rate surveys: Which should you believe?

    Which Mortgage Rate "Survey" Is Best?

    It's hard to window shop for mortgage rates anymore. Markets have changed and so do rates -- sometimes four or five times per day.
    So, when you're looking for "ballpark mortgage rate", where do you do turn?
    A great mortgage lender will want your information before giving you a quote because great lenders know that rate quotes mean nothing without context.
    And, bad lenders -- well, nobody wants to work with a bad lender.
    Because it's so hard to get real-time mortgage rate information, a cottage industry of sorts has sprouted. There are now tens of places where you can find "mortgage rate surveys" online, each purporting to tell you where interest rates are at today.
    However, mortgage rates often vary by as much as 50 basis points (0.50%) between mortgage rate surveys, and rates are rarely in-line with an actual rate quote from an actual mortgage lender.
    So, why the differences? Why do mortgage rate surveys show so such different rates? And which can you believe?
    Click to see today's rates (Dec 4th, 2015)

    What Is A Mortgage Rate Survey?

    A mortgage rate is the rate of interest paid on a home loan. Mortgage rates are "charged" by banks and paid by homeowners.
    In this way, a mortgage rate quantifies the risk that a particular borrower represents to its lender. Borrowers who present with high risk pay higher rates than borrower who present with low risk.
    Risk comes in many forms.
    Risk may come in the form of credit score, or state of residence, or disposition of the property (i.e. primary home, vacation home, investment property).
    Risk can also vary by loan type.
    VA loans, for example, are guaranteed by the Department of Veterans Affairs which means that banks are unlikely to take a loss. By contrast, conventional loans are not guaranteed.
    This is why VA mortgage rates have been the lowest rates available and why a conversation with a lender is required to find the specific mortgage rate for which you're eligible.
    You are different from your neighbor, after all, so your loan will be different from your neighbor.
    But that won't appease you. You just want a "ballpark" rate. To get it, you turn to the internet where  mortgage rate surveys proliferate.
    What's a mortgage rate survey?
    It's a report which shows (1) an average mortgage rate, (2) for a specific mortgage borrower type, (3) for a given period of time.
    For example, a mortgage rate survey may show the mortgage rate for an FHA borrower with a 600 FICO score buying a $200,000 single-family home with 3.5% down in Washington State as 3.75% for last Tuesday.
    Yes, the surveys are that specific in their assumptions. And you may not meet those particular assumptions which, in truth, means that the rate survey doesn't actually help you.
    Your mortgage rate may be higher or lower than what you find online.
    Furthermore, mortgage rates change all the time -- several times daily, even. So, even if you meet the assumptions made by mortgage rate survey online, you're going to miss the timing of it.
    The rate you see online has already expired. The rate you get "right now" is the rate you can take to the bank.
    Click to see today's rates (Dec 4th, 2015)

    Some Popular Mortgage Rate Surveys

    There are a large number of mortgage rate surveys available online and in print. This is a review of some of the more common ones.

    Freddie Mac Primary Mortgage Market Survey (PMMS)

    Freddie Mac is a government- backed entity which buys mortgages from banks and sells them as mortgage-backed securities.
    And, because of its role in the mortgage market, then, Freddie Mac is highly qualified to tell you "what are today's mortgage rates".
    Here's how they do it.
    Each week, Freddie Mac surveys about 125 lenders and asks them about their going rate for mortgage borrowers making a home purchase with 20% down on a conventional loan; with excellent credit scores; and, whom are purchasing a detached single-family home.
    Freddie Mac rates are quoted with discount points included. Discount points are an optional closing cost which lowers a quoted mortgage rate.
    In general, each point lowers are mortgage rate quote by 25 basis points (0.25%).
    Most banks reply to Freddie Mac no later than Tuesday afternoon. Results are published Thursday morning. This 2-day delay introduces some well-documented issues.
    Freddie Mac data doesn't apply to low-downpayment loans -- only to loans with twenty percent down. This is relevant to home buyers with little or nothing to put down.

    Mortgage Bankers Association (MBA) Mortgage Rate Survey

    The Mortgage Bankers Association (MBA) is the largest mortgage banker trade group and, since 1990, it too, has produced a rate survey.
    However, the MBA does its survey a little differently.
    For the MBA's mortgage rate survey, actual mortgage application information is collected from member banks over the course of a week which, for survey purposes, runs Saturday through Friday.
    The MBA then calculates the "average contract rate" over a wide array of loan types including fixed-rate and adjustable mortgages; conforming mortgages; jumbo mortgages; and, government-backed mortgages including FHA loans and VA loans.
    According to the trade group, "more than 75% of U.S. mortgage applications" make it into their weekly survey.
    The survey is released Wednesdays after a 5-day delay.
    The MBA survey is notable because it includes many different loan types so there's a god chance you'll see your preferred loan type in its survey. However, it's sourced from loan applications and not loans closed.
    This means that the rates in the survey are sometimes invalid.
    The MBA survey is also released with discount points. However, the typical number of discount points is lower with the MBA as compared to Freddie Mac which causes the MBA's rates to appear higher (even though they aren't).
    This is because Freddie Mac's 4.00% rate with 1 point is roughly equivalent to the MBA's 4.125% rate with 0.5 points.

    Ellie Mae Origination Insight Report

    Mortgage-software provider Ellie Mae publishes a mortgage rate report, too, known as the Origination Insight Report.
    Using data from the millions of mortgage applications it helps mortgage lenders to process each year, Ellie Mae publishes average rates for actual closed mortgage loans for most common borrower types, and for many popular products.
    For example, the Origination Insight Report shows the average rate FHA borrowers received; and VA borrowers received; and, rates for conventional mortgage loans, too.
    As compared to Freddie Mac and the MBA survey, Ellie Mae's published rates are often the highest and that's because mortgage borrowers tend to close loans without paying points.
    Loans with no points come with higher rates than loans with them.
    Freddie Mac's 4.00% rate with 1 point is roughly equivalent to Ellie Mae's 4.25% rate with 0 points.
    Of all the published surveys, the Origination Insight Report is likely the most accurate report but rates don't get published until 1-2 months later.
    Click to see today's rates (Dec 4th, 2015)

    Popular Consumer News Websites

    Daily and weekly mortgage rates can also be found on common consumer news websites such as Bankrate.com, HSH.com, Zillow, and in the sidebar of just about every personal finance business out there.
    These rates are typically "advertised" mortgage rates, though, and -- like the MBA survey -- don't account for actual rates on closed loans.
    That said, for ballpark shoppers, advertised rates can be more helpful than "closed rates". When you want to know "what are mortgage rates doing today", tracking real-time changes can let you know if rates are rising or falling, at least.
    Caveat: Be sure to check assumptions!
    Sometimes, online mortgage rate advertisements get "loose" with their interest rate assumptions. If you're shopping for a low-downpayment loan, make sure your preferred online site isn't showing you a loan for 20% down.
    Mortgage rates can vary wildly.

    What Are Today's Mortgage Rates?

    It can be tough to shop for mortgage rates online and the proliferation of mortgage rate surveys does little to simplify the process. It's often best to right to the source.
    Get today's live mortgage rates now. Your social security number is not required to get started, and all quotes come with access to your live mortgage credit scores.
    Show Me Today's Rates (Dec 4th, 2015)

    The information contained on The Mortgage Reports website is for informational purposes only and is not an advertisement for products offered by Full Beaker. The views and opinions expressed herein are those of the author and do not reflect the policy or position of Full Beaker, its officers, parent, or affiliates.

    Call Jodi Toebe , she has 20+ yr mortgage experience and is also a Realtor with Remax.  She can help guide you through  the entire process from qualifying for a mortgage to closing on your new home.  Direct# : 262-352-0484  Oconomowoc, Waukesha County ,WI

    Monday, December 7, 2015

    Here’s All The Proof You Need That Owning A Home Is Better Than Renting(Humor)

    Here’s All The Proof You Need That Owning A Home Is Better Than Renting

      sarah-dhondt-authorBy Sarah D'Hondt  |  

      This is for all you renters out there. Ever wake up at 2am to the wonderful sound of your upstairs neighbors dragging what sounds like their refrigerator across the living room? You know it’s probably not their fridge, but seriously, don’t you wonder what’s REALLY going on up there?!
      Well you’re in luck because this video unveils the mystery behind the age-old question, “What in the world are my upstairs neighbors DOING???”
      Via Facebook | Above Average Productions
      Sound about right?
      Wouldn’t you love some privacy, peace & quiet, and not have to deal with rude, loud and inconsiderate neighbors? How about that rent money going to waste every month? Dealing with a landlord and waiting forever for the maintenance people to fix the plumbing?
      If you’re done with the loud music, loud televisions, loud sex, and loud fights, call your local Realtor and start enjoying the peacefulness of homeownership for a change.
      I could list a hundred reasons why owning a home is better than renting, but not having to deal with inconsiderate neighbors would be in the top three! Saving money and building equity would be #1, and having a home to do whatever you want with is #2. Besides, when you aren’t sharing walls with neighbors, you can be as loud and obnoxious as you want!

      Get out of renting and into owning your own home!  Call Jodi Toebe REMAX 262-352-0484.

      Saturday, December 5, 2015

      7 Ways to Reduce Stress When Buying or Selling a Home

      7 Ways to Reduce Stress When Buying or Selling a Home
      7 Ways to Reduce Stress When Buying or Selling a Home
      Sat, October 3, 2015
      Research has shown that buying or selling a home can be one of life’s most stressful events — right up there with filing for bankruptcy or getting a divorce. Preparation is the key to reducing anxiety. Here are a few tips:

      1. Choose your agent carefully
      An experienced pro will be prepared for every twist in the road, minimizing stress for you.

      2. Home buyers: List before looking
      Create and prioritize a list of “wants” and “needs” of home features before you begin touring properties. Waiting to think about what you’re truly looking for in a home until the showing will put you on the spot, creating anxiety.

      3. Home buyers: Get mortgage preapproval
      Having your finances ready eliminates white-knuckled waiting periods, or unpleasant surprises from lenders after you’ve found your dream home.

      4. Don’t take things personally
      It’s not you, it’s them. Or the market. Or the lender. Try not to take it personally if buyers value your home for less than what you’re asking, or if a seller rejects what you believe is a perfectly reasonable offer.

      5. Keep things in perspective
      Consider the worst-case scenario. Will you have to forage for food? Will you need to sell a kidney? Probably not. Other buyers will eventually materialize. Or you’ll find another home you love just as much as the one that got away.

      6. Focus on something else
      Give yourself a break and indulge in an activity that requires the undivided attention of your body and mind. Yoga lessons, anyone?

      7. Find a four-legged friend
      Petting and playing with animals is clinically proven to lower your blood pressure. And they won’t interrupt if you need to vent.

      Talking things through with your Realtor is another way to de-stress. Call Jodi Toebe REMAX 262-352-0484 to help you take the stress out of your transaction.