Whether your are buying your first home, or financing a rental or vacation home, Hanson Mortgage Corp has the right program for you. Serving VT, NY, and FL since 2000, we are a licensed residential mortgage broker committed to finding you great rates and low costs. Call us today for a free estimate 802-879-3950.
Duration : 0:0:32
Here at Hanson Mortgage Corp, we are committed to finding you a great rate at low costs. We are an independant family-owned mortgage broker serving homeowners, homebuilders, and homebuyers since 2000. Call us today at 802-879-3950.
Duration : 0:0:32
Hanson Mortgage Corp is a Vermont family owned mortgage company licensed in VT, NY and FL. Call us today for all of your new construction financing needs. 802-879-3950. We offer free preapprovals over the phone in about 5 minutes.
Duration : 0:0:32
Intro
Hello. I’m Bernard Hickey with the daily briefing from interest.co.nz…
Today, we’ll look at the latest signs of stress in a housing market where the bubble is bursting,
We’ll look at the latest news from the global credit crunch and what it might mean here for interest rates and our exchange rates,
And finally we’ll preview the next big batch of mortgage rate resets and how it will coincide quite nicely with the election.
Story 1,
Firstly we look at some signs emerging of real stress in the housing market.
Essentially the bubble is bursting and we’re at that exact stage where the bubble pops, covering everyone in soap.
The Sunday Star Times has reported that all 21 house auctions it watched in the last week failed to sell the house, either at auction or after auction. It seems some of the auctions even failed to raise a bid.
Real estate agents report that auction failure rates have more than doubled to 70% in the last year.
It’s clear the market is in deep trouble when you look at the pointy end of the process — mortgagee sales.
We’ve just started an index measuring mortgagee sales listed on trademe.co.nz and realestate.co.nz. This week we saw a big increase to 212 properties listed from 154 properties listed last week.
However this should be taken with a grain of salt. Barfoot and Thompson, which is the biggest real estate agency group, have just started listing their properties with trademe. So their mortgagee sales were included for the first time.
But it is clear there’s a rising trend of mortgagee sales.
Story 2
Now let’s have a quick look at the latest news on the credit crunch coming through from America.
New Zealanders are starting to work out this really matters now that some of the banks are putting up fixed mortgage rates because of higher wholesale mortgage rates, which are directly linked to the turmoil on global credit markets since the sub-prime credit crisis hit the markets midway through last year.
Late on Friday UBS predicted that the big banks may have to book losses of US$600 billion because of exposures to toxic bonds that aren’t paying their way. And then we saw more news that the housing market in America is in dire straights.
There are now more than half a million new houses that are sitting there empty. More than 300,000 of those are empty because people pulled out of initial deals to buy the house.
This latest batch of bad news had real impact on financial markets late on Friday. Stock markets fell more than 3% and the nerves hit those currencies seen as slightly riskier because they depend on the carry trade, where investors borrow in one cheap currency and invest in another currency with higher interest rates.
That meant the New Zealand dollar fell sharply this morning to below 80 cents. This is likely to mean higher interest rates too as nervous global investors demand more for the money they lend us to finance our current account deficit.
Story 3
And finally we look ahead over the rest of the year to an impending rash of mortgage rate resets.
You might remember back in the spring of 2004 the BNZ launched its unbeatable campaign for 2 year fixed mortgages that sparked a price war and a heavy bout of lending. This gave the housing market a second wind.
Those mortgages were reset for the first time in the spring of 2006 and now they’re due to be reset again in the spring of 2008.
We estimate over $40 billion of mortgages or more than 300,000 mortgages will be reset and their mortgage rates will rise from 7.99% to around 9.7%. For someone with a 250,000 dollar mortgage it means their weekly payments will rise by around $60.
This will all happen around the time of the election later this year and will no doubt sharpen political minds on the effects of their policies on interest rates.
In particular the effects of big tax cuts, which the Reserve Bank governor Alan Bollard has warned would increase inflation and may force him to put up interest rates.
I’m Bernard Hickey from interest.co.nz with the Daily Briefing. Catch you on Tuesday.
Duration : 0:4:21
David Bach helps you understand the basics about your mortgage; how much you can afford, how to get qualified, what term is best for you and much more. You’ll learn how to find a lender of integrity to help you make these important decisions and prepare you for the homebuying process and serve you after you’ve bought your home.
Remember, homeownership is still the single most important investment you can make in your lifetime. Look for other webisodes in this series by searching for “Smart Homeowners” or visit finishrich.com
Duration : 0:5:15
In order to become a licensed mortgage broker, there is a state-certified course that needs to be taken, and there also needs to be a full background check. Learn about recent changes in licensing requirements with help from a financial services manager in this free video on becoming a licensed mortgage broker.
Expert: Matthew McKillen
Contact: www.excelmortgage.com/
Bio: Matthew McKillen brings 21 years of industry experience in arranging loans for his clients.
Filmmaker: Christopher Rokosz
Duration : 0:0:49
UIFC, which was formed on December 29, 2005 and capitalized with $15,581,000 in shareholder equity and assets, is the first ever U.S. Islamic Banking Subsidiary to be formed. UIFC engages in Islamic Banking with an initial focus on its existing product set: soliciting Islamic Sharia’a FDIC-insured Deposits held by University Bank and originating Islamic Sharia’a home financings as agent for University Bank. UIFC’s products have received favorable legal rulings (fatawa) from some of the leading Islamic legal scholars in the U.S. and the world. University Bank also recently announced a $100,000,000 strategic relationship with the Federal Home Loan Mortgage Corporation to create a secondary market for UIFC’s Sharia’a compliant home financings nationwide.
For additional information about UIFC’s Sharia’a compliant products and its fatawa, see www.universityislamicfinancial.com .
Duration : 0:3:5
First Time Home Buyer Tax Credit Loan Program with Low Interest Rate FHA Mortgage and Low Down Payment. Government Assistance to purchase Lender Foreclosed Homes. Go To http://RealEstateMarketingThisWeek.com
Part 4 (Excerpt)
FHA financing why you should work with a broker: 4% appreciation over the last 17 years
You mentioned earlier that property values are up 71% long term, even though we had this 50% drop. Youre talking about the average 4% appreciation per year since 1992.
Right, I did some calculations I was working on a book last year and one of these days I may get around to publishing it. Its called Real Estates Future and what we were looking at was a statistical model to be able to pick the top and the bottom of all the real estate markets. I hadnt looked at the thing for about a year until I was working with Michael the other day and I started pulling it out and going lets run the model and see where we are in regards to the market, and one of the things I looked at is the last time we saw the bottom of the market was when I was selling houses for the RTC and that was in 1992, the median home price was $76,000. Median home price now is $130,000. That means from 1992 until now it went up 71%, thats after we just saw a 50% decline. So it is up 4% per year on average, and where else are you going to get a return like that? Even if you put 3.5% down on a house you are getting a heck of a lot more than a 4% return. If you look at the internal rate of return it is significantly greater.
Right and dont buy a house because you are looking at a rate of return. If you are a first time home buyer and you can qualify for this program, if you have been living in an apartment for the last three years and you just want to have a better place for yourself and your family to live, I know right now there are a lot of fabulous houses out there for $130,000. I saw one the other day that was listed at $100,000 that I know was probably at least $250,000 a couple of years ago. Yes, four bedroom-three bath houses, we are currently working on several cases at $150,000 or below, in good parts of Maricopa county.
I ran some numbers before as well just looking at the number of homes that sold in Maricopa County in January and in that month 45% of all the houses that were sold, sold for less than $130,000. And when I had the example earlier about the median family could buy a $280,000 that was 85% of the market. 85% of all the houses that were sold in Maricopa County could be purchased by a family of four with a median income.
And you know with the loan limits the way they are with FHA with 3.5% down you can go all the way up to $358,000 and still only put 3.5% down. Pretty much anyone can get in and I would probably say that 90-95% of all the houses sold were within the FHA loan limit. That means you can still get in with 3.5% down, you dont have to have perfect a credit report, you cant have a lot of bumps on it but it doesnt have to be perfect, you dont have to have a huge FICO score.
Do they even look at FICO scores? Its complicated, the Federal Housing Administration does not have a minimum FICO score requirement, however all of the mortgage banks have overlays, so in other words nobody uses just the FHA guidelines, they have their own parameters on top of the FHA requirements. One of the main reasons why you would want to go to a broker instead of directly to your bank is they may or may not have enough overlays that will work in your favor. As a broker we have all of the major mortgage banks and we know the guidelines, so we can make anyone fit into a house that can get approved.
Right and thats always the nice thing about working with a broker because you have, lets say you have 20 banks that you are signed up with and you are FHA with all of them, so you have 20 different sets of guidelines that you can fit the borrower into. If a home buyer went to a bank and they had to do an appraisal and a credit check and all that and then they denied you, you would have to go to a different bank and they would have to do all that same stuff all over again. When you are working with a broker they do it one time and then shop it to 20 different lenders.
Yes, and I have to point something out more importantly, if you go directly to your bank and you do get declined after you have spent the money on all these different things the process is much more difficult because you have to start all over again and the reason you were declined has to be explained as well and it becomes a much more lengthy process. Where as when working with a broker you dont have to do that. We take the hit for you and we move you into the right lender of your choice…
Duration : 0:6:3
David Reese wrecks and gets wrecked by a humongous Goliath. http://chewonthis.tv/rates.html
Duration : 0:7:44
Fed announce propose rules for mortgage lenders. (Bloomberg News)