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The Truth About Mortgage
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Mortgage tips and advice.
Mortgage tips and advice.

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In lieu of the government shutdown, Wells Fargo has offered to waive late fees on late mortgage payments.  Not sure how many people were actually late, but it's a nice gesture.  Late fees vary based on loan size and term, etc. #mortgagenews #wellsfargo  
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I couldn't resist... #refinance #mortgage  
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Here's a little something for those stuck in front of the computer this weekend (as opposed to relaxing at the beach or the lake) still determining if they should buy that house down the street or continue renting.  It was an easier decision back when rates were dirt cheap and home prices hadn't yet skyrocketed, but it still could be a good opportunity, especially if you simply WANT to own, regardless of the investment aspect. #realestate #mortgage #rent   #decisions  
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Best quote from the latest National Association of Realtors release: “The initial rise in interest rates provided strong incentive for closing deals.  However, further rate increases will diminish the pool of eligible buyers.” - Lawrence Yun #realestate #housingmarket  
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It's officially BubbleWatch 2013.  Or Housing Bubble 2.0.  Not in my own words, but rather Karl Case's, one half of Case-Shiller.  For the record, I'm sure Shiller would echo his sentiment without hesitation. How long will the housing rally last?  Will other major metros be next?  Stay tuned. #housing #housingrecovery #realestate #housingmarket  
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I’ve been referring to the latest FHA initiative to accept borrowers just one year out of short sale, foreclosure, or bankruptcy as “sub-subprime.”

While it’s a nice gift for those who legitimately lost their homes during the crisis due to some unforeseen event, these types of programs always wind up with tons of loopholes.  And you have to question a move like this while the FHA is working to clean up its act, considering it was hemorrhaging money for so long.

Hopefully they underwrite these files carefully to avoid even more losses in the future…

  #mortgage #foreclosure #fhaloans
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A lot of people have been asking me whether they should go with a long hybrid ARM vs. a fixed-rate mortgage, now that rates have spiked higher.  I actually wrote about this topic about two years ago when I compared 30-year loans to 10/1 ARMs.  The latter can make sense in certain situations, though it often just comes down to personal preference, and also life plans. 

For the individual who plans to move in the not-too-distant future, a loan fixed for a decade would probably suffice and save the borrower some cash each month.  But for someone who sees their current property as their forever home, a fixed loan at today’s rate is still quite attractive, even though they have risen substantially.

When it comes down to it, you must answer this question yourself, based on what works for you.  I will add that most people move or refinance in less than 10 years.  But the unknown can be stressful too, and sometimes 10 years can go by faster than you think. #mortgage #choices  
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In the past week or two, I've seen a bit of a shift in the real estate market, at least locally in West Los Angeles. As everyone probably knows, mortgage rates have surged since May, rising more than 1% from record lows to two-year highs.

Clearly that rise has hit affordability to some meaningful degree. At the same time, existing homeowners continue to list their properties at higher and higher prices, despite this unprecedented rise in rates.

And now I'm seeing properties sit on the market, as opposed to moving to pending status within a week. Perhaps a little bit of greed is hitting the market here. 

When it comes down to it, you can't expect to list a property for 50% more than what like properties were selling for a year ago when interest rates were 25%-30% lower. Eventually buyers catch on and loss interest.

It doesn't mean the market is going to crash, it just means it's time for a reality check. Real estate agents need to be a tad more realistic.  The mini boom looks to be over.  #mortgage #reality #bubblelicious #realestate  
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Borrower beware: At the moment, there are a lot of gimmicks out there aimed at snagging your mortgage business. Sure, it sounds cool to get $500 or $1,000 off closing costs, or a guarantee if something goes wrong, but at what price?

Make sure you actually get the best combination of mortgage rate and fee, otherwise those discounts could actually cost you. And don't forget customer service. Choose a lender you trust to close your loan! #mortgage  
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