By Angela Baca
New rules from the Fed have changed mortgage-lending practices. Although the new rules were put in place to help protect consumers, they may also cause an increase in loan processing time.
Amendment to Regulation Z
On July 14, 2008, the Fed amended Regulation Z (Truth in Lending) to prohibit unfair, abusive, or deceptive practices by mortgage lenders and to restrict other practices. Lenders face new advertising standards, and they must disclose information early in the loan process. All lenders must follow advertising standards regardless of whether they have federal deposit insurance.
New Rules for Consumer Protection
For a consumer who needs another loan based on the first home's value, lenders must take 4 new steps:
1. Avoid writing a loan without considering ability to repay beyond a home's equity.
2. Verify income and assets.
3. Eliminate prepayment penalties for mortgages with adjustable payments within the first four years; for other loans, the prepayment penalty lasts no more than two years.
4. Establish escrow for taxes and insurance on the first mortgage.
The foregoing rules apply to higher-priced mortgages, or subprime loans with an interest rate at least 1.5 percentage points above Freddie Mac's prime rate and 3.5 percentage points above for subordinate mortgages. Requirements for all Lenders
New rules apply to subprime mortgages and most other mortgages, but do not affect construction or bridge loans, reverse mortgages, or lines of credit (LOCs). Regardless of your interest rate, the following affects a loan secured by your primary residence:
1. A creditor or mortgage broker cannot coerce an appraiser into being dishonest about a home's value.
2. Mortgage servicers cannot use certain practices, including pyramiding late fees. They must credit payments on the date of receipt and provide loan payoff information within a reasonable period.
3. A lender must provide a borrower with a Good Faith Estimate (GFE) within 3 days of receiving their loan application. The applicant cannot be charged any fees, except for the cost of pulling credit history, until after they have received an early disclosure.
4. Once the applicant receives the final cost disclosure, the lender is required to wait seven days before closing on the loan. If the final annual percentage rate (APR) varies by more than .125% from the initial GFE disclosure, the lender must re-disclose and wait yet another three days before closing.
Stricter Advertising Rules
Lenders must also provide more information when they advertise rates, monthly payments, and other features. There are stricter rules against misleading advertising and a ban against saying a rate is fixed when it might change.
These rules are part of the Mortgage Disclosure Improvement Act (MDIA) and were effective July 30, 2009, except for the escrow requirement (which will begin in 2010). Be sure to get more updates from your real estate agent or broker about the changing mortgage market.
Thursday, November 12, 2009
Friday, October 30, 2009
Tentative Good News ref Home Buyer Credit!
Daily Real Estate News | October 29, 2009
Homebuyer Credit Gets New Life
Key lawmakers in the Senate have tentatively agreed to extend the existing $8,000 tax credit for first-time home buyers and also offer a new $6,500 credit for existing homeowners who have lived in their current residence for a consecutive five-year period in the past eight years.
Home buyers must be under contract by April 30, 2010, and close before July 1. House Democrats have expressed concern about the cost of the tax credit for the government, and allegations of abuse have resulted in an IRS probe of the program.
Source: Wall Street Journal, Corey Boles and John D. McKinnon (10/29/09)
© Copyright 2009 Information Inc.
Homebuyer Credit Gets New Life
Key lawmakers in the Senate have tentatively agreed to extend the existing $8,000 tax credit for first-time home buyers and also offer a new $6,500 credit for existing homeowners who have lived in their current residence for a consecutive five-year period in the past eight years.
Home buyers must be under contract by April 30, 2010, and close before July 1. House Democrats have expressed concern about the cost of the tax credit for the government, and allegations of abuse have resulted in an IRS probe of the program.
Source: Wall Street Journal, Corey Boles and John D. McKinnon (10/29/09)
© Copyright 2009 Information Inc.
Thursday, October 29, 2009
Interested in Sales Statistics for Mt Pleasant (Hawthorne, Thornwood, Valhalla and Pleasantville) this year?
Here they are! I pulled the data from the Westchester-Putnam Multiple listing service (MLS) as of today, 10/29/09 for the year to date:
One-Family homes/price range $350K - $700K
Solds: 66Avg Price: $541 / *DOM: 156
Sales Price / Listing Price = 96.21%
Conditional Contracts: 21 *DOM: 134
Pendings: 26*DOM 150
Actives: 86 / *DOM 117
*DOM = Days on Market
One-Family homes/price range $350K - $700K
Solds: 66Avg Price: $541 / *DOM: 156
Sales Price / Listing Price = 96.21%
Conditional Contracts: 21 *DOM: 134
Pendings: 26*DOM 150
Actives: 86 / *DOM 117
*DOM = Days on Market
Autumn is Here!
Autumn Décor Accents
By J. A. Young
Fall is the season of cool, crisp weather, brilliant scenery and bountiful harvests. Bringing the autumn indoors is a way to transform your décor with both subtlety and a richness of color and warmth. Here are a few ways you can add fall accents to your home.
Get Ornamental Gourds
Not just the requisite pumpkin for the porch, but several small to large ornamental gourds to be used as a dining room table centerpiece, as a coffee table prop and even to place here and there on the book shelves. Ornamental gourds come in many sizes and shapes and their appeal is great during the harvest season. Decorate with Flowers in Seasonal Colors
Add a wreath to the door abundant with fall blooms dried and interspersed on a grapevine. Consider hydrangea, yarrow and goldenrod for a warm welcome into your home. Also, place bouquets of dried flower arrangements throughout your home—each with fall colors for effect.
Celebrate the Season with Scented Candles
Find an old copper tub and fill it with water. Then add some novelty candles that float—apple-shaped and scented (available at large craft stores)—and scatter some autumn leaves around its base for accent. Add other scented candles around the house, in fall fragrances like nutmeg and spice.
Add an Extra Touch with Inexpensive Fabrics
Go shopping at antique stores or flea markets for fabric in gold, yellows, oranges, browns and reds. Make new curtains or an autumn tablecloth. Flea markets are great places to find old quilts in fall colors—even if it's not in great condition, it can be used for various autumn crafts.
By J. A. Young
Fall is the season of cool, crisp weather, brilliant scenery and bountiful harvests. Bringing the autumn indoors is a way to transform your décor with both subtlety and a richness of color and warmth. Here are a few ways you can add fall accents to your home.
Get Ornamental Gourds
Not just the requisite pumpkin for the porch, but several small to large ornamental gourds to be used as a dining room table centerpiece, as a coffee table prop and even to place here and there on the book shelves. Ornamental gourds come in many sizes and shapes and their appeal is great during the harvest season. Decorate with Flowers in Seasonal Colors
Add a wreath to the door abundant with fall blooms dried and interspersed on a grapevine. Consider hydrangea, yarrow and goldenrod for a warm welcome into your home. Also, place bouquets of dried flower arrangements throughout your home—each with fall colors for effect.
Celebrate the Season with Scented Candles
Find an old copper tub and fill it with water. Then add some novelty candles that float—apple-shaped and scented (available at large craft stores)—and scatter some autumn leaves around its base for accent. Add other scented candles around the house, in fall fragrances like nutmeg and spice.
Add an Extra Touch with Inexpensive Fabrics
Go shopping at antique stores or flea markets for fabric in gold, yellows, oranges, browns and reds. Make new curtains or an autumn tablecloth. Flea markets are great places to find old quilts in fall colors—even if it's not in great condition, it can be used for various autumn crafts.
Thursday, October 22, 2009
Positive News in the Housing Market?
Positive Trends: is the Housing Market Headed for Recovery?
By Deanna Sletten
After four months of rising home sales, the housing market is looking brighter. The National Association of Realtors reported that between April and July existing home sales experienced increases each month with July leading with a 7.2% increase. It has been five years since the real estate market has seen such an upward trend and it has led many in the industry to believe that the market has finally bottomed out and is heading for recovery.
Sales of Foreclosures Led the Way
Many factors prompted the rise in sales over the past four months. Sales of foreclosure and distressed homes were up 31% in July because of their affordability. First-time home buyers accounted for 30% of the July sales so they could qualify in time for the $8,000 tax credit. Low mortgage interest rates also contributed to the surge in sales. With a market full of affordable homes to choose from and low interest loans available, home buyers are
taking advantage of the deals and buying nicer homes they might otherwise have not been able to afford.
Where Recovery is Felt the Most
Thirty-nine states saw sales increase over the last two quarters with some states, such as New York, Hawaii and Wisconsin, seeing an increase of 20% or more. Sales varied depending upon how heavily the areas were hit by the real estate crash. California, Michigan and Colorado saw a drop in sales by 6% even though other states saw increases in sales. In cities like San Diego, Phoenix, Orlando and Las Vegas where house prices have dropped significantly while incomes have stayed the same, the demand for foreclosure and lower priced homes has soared. Experts agree that the recovery will be slower for some areas than for others depending upon how hard the area was hit.
Will the Recovery Continue?
Even though the housing market looks as though it's on the way to recovery, experts caution that it may not see a significant upswing until the early part of 2010 when the economy is expected to pick up. Another factor that may help the recovery is dependent upon Congress extending the first-time homeowner tax credit past the November 30 deadline and into 2010 which is being lobbied for by two national organizations.
A total housing market recovery is dependent upon how quickly the economy picks up and how long interest rates stay low. But for now, economists are encouraged by the continued increase in sales and believe that the housing market is heading toward a recovery.
By Deanna Sletten
After four months of rising home sales, the housing market is looking brighter. The National Association of Realtors reported that between April and July existing home sales experienced increases each month with July leading with a 7.2% increase. It has been five years since the real estate market has seen such an upward trend and it has led many in the industry to believe that the market has finally bottomed out and is heading for recovery.
Sales of Foreclosures Led the Way
Many factors prompted the rise in sales over the past four months. Sales of foreclosure and distressed homes were up 31% in July because of their affordability. First-time home buyers accounted for 30% of the July sales so they could qualify in time for the $8,000 tax credit. Low mortgage interest rates also contributed to the surge in sales. With a market full of affordable homes to choose from and low interest loans available, home buyers are
taking advantage of the deals and buying nicer homes they might otherwise have not been able to afford.
Where Recovery is Felt the Most
Thirty-nine states saw sales increase over the last two quarters with some states, such as New York, Hawaii and Wisconsin, seeing an increase of 20% or more. Sales varied depending upon how heavily the areas were hit by the real estate crash. California, Michigan and Colorado saw a drop in sales by 6% even though other states saw increases in sales. In cities like San Diego, Phoenix, Orlando and Las Vegas where house prices have dropped significantly while incomes have stayed the same, the demand for foreclosure and lower priced homes has soared. Experts agree that the recovery will be slower for some areas than for others depending upon how hard the area was hit.
Will the Recovery Continue?
Even though the housing market looks as though it's on the way to recovery, experts caution that it may not see a significant upswing until the early part of 2010 when the economy is expected to pick up. Another factor that may help the recovery is dependent upon Congress extending the first-time homeowner tax credit past the November 30 deadline and into 2010 which is being lobbied for by two national organizations.
A total housing market recovery is dependent upon how quickly the economy picks up and how long interest rates stay low. But for now, economists are encouraged by the continued increase in sales and believe that the housing market is heading toward a recovery.
Friday, August 21, 2009
NY State First Time Home Buyer Credit - Enhancement
Gov. David A. Paterson announced last week that New York will offer a federal income tax credit to first-time homebuyers to encourage home sales in New York State. The New York State Mortgage Credit Certificate Program (MCC) will enable first-time homebuyers to claim a tax credit equal to 20 percent of their annual mortgage interest costs, which could save the average homebuyer around $1,500 a year. This program expands the $8,000 First-Time Homebuyer Credit, which expires on November 30, 2009.
Closets 101 (you've heard this from me before!)
Learn How to Purge Closets Sensibly
By Katherine Salant, Washington PostSaturday, August 15, 2009
In many cases, the desire to move to a bigger house is driven by the need to "get my life under control."
The thinking goes something like this: In a bigger house I will have more places to put things and bigger closets so my house will not be awash in clutter anymore.
But bigger closets can be both a blessing and a curse, said Sandra Felton, founder of Messies Anonymous (http://www.messies.com), author of seven books on how to create order from household chaos, and a person who learned to keep order in her own house after struggling with chaos for more than 23 years.
The problem with the bigger closet solution, Felton said, is that many people regard their bigger closet as an "ever expanding universe" and keep on accumulating things until the new closet becomes as crammed as their old one.
Even worse, the scale of disorder in a bigger closet can often become a heavier burden than it was with the smaller one, Felton said. When a 10- to 15-foot-long walk-in closet (not an unusual size in houses built in the last 20 years) is filled, "you've created your own boutique," Felton said. You can feel like you're managing a store or a warehouse without the benefit of a modern inventory system. You can't remember what you own, or you can't find it, and you end up with multiple and nearly identical clothing items, shoes and accessories.
A more adaptive strategy if you're striving for order, and one that could ultimately lead you to stay where you are, Felton said, is a "steady state approach" -- a recognition that the closet size is finite and that when you acquire new things you need to remove some old ones.
It sounds easy enough, add a new thing, subtract an old thing, but many people find the subtraction aspect paralyzing and decisions on what to keep and what to discard impossible, Felton said.
To this, Feldon says simply, "you have to be a grown up and ask yourself a few simple questions: Do I use it? Is it more important than other things that will also take up space? Is it important that I have it?" She says the decision-making process gets easier with practice; it's also easier with smaller closets that limit what you can accumulate.
In her own 1950s Miami ranch, the closets are only 39 inches long. She uses two closets for her clothes, and this keeps her decisions regarding her wardrobe to "manageable numbers," she said.
It's tempting to wait until you can't fit anything more into your closet to decide what should go, but this can leave you feeling pressured and making choices you later regret, Felton said. She's found she's more comfortable with a "de-access as you go" approach, and she removes a garment as soon as she's ready to part with it. To keep herself from revisiting her decision, the garment goes in a "charity box" on the other side of her house and, in short order, to a local charity.
But Felton acknowledges that the disposition answers do not come easily in every instance, and she says you don't have to give every old garment away as you acquire new ones.
Many things have special sentimental value because they are "memory holders" that give us a sense of who we are, Felton said. We need to keep these pieces of our personal history, but we don't have to have them immediately accessible. They can be archived and stored elsewhere in your house. In describing the kinds of priceless and unique things that people keep, she mentioned her father's college diploma. But, she emphasized, you don't have to keep everything a person ever gave to you to honor their memory.
Felton also emphasized that many people need time to get comfortable with giving away things of a personal nature. While some people "can do it without feeling a twinge," most people become upset if these things are "jerked out of their lives," she said.
And sometimes you just can't decide what to do with something.
Felton's solution to this dilemma is an "ambivalence box." It can be filled with clothes and anything else, sealed and stored in an out-of-the-way place like a basement or garage for five or six months. You'll be pleased with the closet space that the ambivalence box frees up, Felton said, and when you eventually open it, you'll discover that you feel differently about its contents. "Time dulls their sparkle and they don't look as good after a long period," she said.
Felton has done this many times over the years, and she said she can't recall ever using any of the boxed-up items again, though she's archived a few clothing items that were "beautiful in their own way, even if they weren't stylish anymore or wearable."
The idea of organizing yourself to carry out Felton's ambivalence box suggestion may seem like too much time and trouble, but an impending move can be a powerful "situational" motivation, she said.
It worked for me. When we moved to New York City for a year, I boxed up half of my clothes and stored them in our basement. When we returned, I was amazed at the clarity that time can bring. In less than an hour, I went through all the boxes and dispatched more than half of the contents to a local thrift shop.
What was in my personal time capsule that I so easily parted with?
-- Clothing that had belonged to my mother that I realized I didn't need to honor her memory.
-- Worn-out shoes that I loved and had worn on a European trip with our children.
-- Work attire that might fit someday.
-- Garage-sale items that I might wear someday.
-- Everything I hadn't worn in at least five years.
-- Worn out clothes I had kept because they were given as presents by my family.
-- Items that salespeople had convinced me were "flattering" but which I had never worn.
-- Clothes I had worn on special family occasions.
By Katherine Salant, Washington PostSaturday, August 15, 2009
In many cases, the desire to move to a bigger house is driven by the need to "get my life under control."
The thinking goes something like this: In a bigger house I will have more places to put things and bigger closets so my house will not be awash in clutter anymore.
But bigger closets can be both a blessing and a curse, said Sandra Felton, founder of Messies Anonymous (http://www.messies.com), author of seven books on how to create order from household chaos, and a person who learned to keep order in her own house after struggling with chaos for more than 23 years.
The problem with the bigger closet solution, Felton said, is that many people regard their bigger closet as an "ever expanding universe" and keep on accumulating things until the new closet becomes as crammed as their old one.
Even worse, the scale of disorder in a bigger closet can often become a heavier burden than it was with the smaller one, Felton said. When a 10- to 15-foot-long walk-in closet (not an unusual size in houses built in the last 20 years) is filled, "you've created your own boutique," Felton said. You can feel like you're managing a store or a warehouse without the benefit of a modern inventory system. You can't remember what you own, or you can't find it, and you end up with multiple and nearly identical clothing items, shoes and accessories.
A more adaptive strategy if you're striving for order, and one that could ultimately lead you to stay where you are, Felton said, is a "steady state approach" -- a recognition that the closet size is finite and that when you acquire new things you need to remove some old ones.
It sounds easy enough, add a new thing, subtract an old thing, but many people find the subtraction aspect paralyzing and decisions on what to keep and what to discard impossible, Felton said.
To this, Feldon says simply, "you have to be a grown up and ask yourself a few simple questions: Do I use it? Is it more important than other things that will also take up space? Is it important that I have it?" She says the decision-making process gets easier with practice; it's also easier with smaller closets that limit what you can accumulate.
In her own 1950s Miami ranch, the closets are only 39 inches long. She uses two closets for her clothes, and this keeps her decisions regarding her wardrobe to "manageable numbers," she said.
It's tempting to wait until you can't fit anything more into your closet to decide what should go, but this can leave you feeling pressured and making choices you later regret, Felton said. She's found she's more comfortable with a "de-access as you go" approach, and she removes a garment as soon as she's ready to part with it. To keep herself from revisiting her decision, the garment goes in a "charity box" on the other side of her house and, in short order, to a local charity.
But Felton acknowledges that the disposition answers do not come easily in every instance, and she says you don't have to give every old garment away as you acquire new ones.
Many things have special sentimental value because they are "memory holders" that give us a sense of who we are, Felton said. We need to keep these pieces of our personal history, but we don't have to have them immediately accessible. They can be archived and stored elsewhere in your house. In describing the kinds of priceless and unique things that people keep, she mentioned her father's college diploma. But, she emphasized, you don't have to keep everything a person ever gave to you to honor their memory.
Felton also emphasized that many people need time to get comfortable with giving away things of a personal nature. While some people "can do it without feeling a twinge," most people become upset if these things are "jerked out of their lives," she said.
And sometimes you just can't decide what to do with something.
Felton's solution to this dilemma is an "ambivalence box." It can be filled with clothes and anything else, sealed and stored in an out-of-the-way place like a basement or garage for five or six months. You'll be pleased with the closet space that the ambivalence box frees up, Felton said, and when you eventually open it, you'll discover that you feel differently about its contents. "Time dulls their sparkle and they don't look as good after a long period," she said.
Felton has done this many times over the years, and she said she can't recall ever using any of the boxed-up items again, though she's archived a few clothing items that were "beautiful in their own way, even if they weren't stylish anymore or wearable."
The idea of organizing yourself to carry out Felton's ambivalence box suggestion may seem like too much time and trouble, but an impending move can be a powerful "situational" motivation, she said.
It worked for me. When we moved to New York City for a year, I boxed up half of my clothes and stored them in our basement. When we returned, I was amazed at the clarity that time can bring. In less than an hour, I went through all the boxes and dispatched more than half of the contents to a local thrift shop.
What was in my personal time capsule that I so easily parted with?
-- Clothing that had belonged to my mother that I realized I didn't need to honor her memory.
-- Worn-out shoes that I loved and had worn on a European trip with our children.
-- Work attire that might fit someday.
-- Garage-sale items that I might wear someday.
-- Everything I hadn't worn in at least five years.
-- Worn out clothes I had kept because they were given as presents by my family.
-- Items that salespeople had convinced me were "flattering" but which I had never worn.
-- Clothes I had worn on special family occasions.
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