After a short hiatus, Chad is back spreading the mortgage good news. In this video Chad talks about rates, FHA changes that are coming up and some current Phoenix housing data. If you have any comments for Chad you can always reach him at chad@chadstallings.com
Archive for the 'Economy' Category
17
Aug
10
Video: Return of the Vlog!
24
Jul
10
Video: HVCC on the brain…again
In this vlog Chad speaks again about HVCC and its effect on the Real Estate industry. The introduction of HVCC has not helped the quality of appraisals, it has raised the cost, and made the process more difficult all of which affect the consumer in the end. To comment please email Chad at chad@chadstallings.com
15
Jul
10
Video: Interesting Info.
Here we find Chad talking about some interesting information that he found that may or may not be a sign of things to come in the Real Estate world. Also, he talks about the 38 year low rates and how you can still benefit from a refinance even if you owe close to or just over what your home’s value is. If you would like to comment on this or anything else, you can reach Chad at chad@chadstallings.com
This video finds Chad in his vehicle after meeting with another client. Chad talks about the positive things that are happening in real estate and the opportunities that currently exist. You can contact Chad at chad@chadstallings.com
23
Jun
10
Video: I’m just a bill…
This video is a demonstration of how a bill becomes a law and how it relates the real estate and mortgage industry. Particulary how this process affects folks that are eligble for the tax credit. To comment, please email Chad at chad@chadstallings.com
As we meander through this economic downturn, we continue to see more and more regulations coming down on the real estate finance industry. That is because, if you didn’t know, every mortgage professional is a crook that took advantage of the common folk. Now of course I don’t believe that every mortgage professional is a crook although there were a number of them in our industry. Most of those types are out of business now due to the market conditions. However it seems as though Washington does look at us like that (even though they were the ones who told us to issue more loans to raise the homeownership levels in the US). And as is typical with Washington these days, the results of the regulations that are supposed to make the “streets” safe for someone looking to get a mortgage are having major unintended consequences that are affecting the consumer in the end.
HVCC, which was to clean up the appraisal industry, has failed by raising the cost of appraisals and has lowered the level of quality that we are seeing. The new Good Faith Estimate that was supposed to promote more clarity with the fees went from one itemized page to four pages with lump sums. Oh and there is no down payment, total monthly payment or true “cash to close” figure not to mention that it doesn’t even require signatures. All this with guidelines getting stricter and require fees going up ie FHA Mortgage Insurance.
While it may seem that the mortgage guidelines are making it an impossible mission to get a home loan and our good buddies in Washington, who know whats best for us, keep hitting us with regulations that seem to punish the consumer in the long run, there seems to be light at the end of this tunnel. You are now able to do a 5% down conventional loan in AZ. That was gone for a good 3yrs. The foreclosure numbers seem to be leveling off in certain areas. I’ve even run across a lender that is looking at a loan that “makes sense” rather than just by the hard numbers. Mortgage rates are and have been at historic lows. This along with low home prices makes in a fantastic time to buy.
So I don’t want to be all gloom and doom. Getting a mortgage these days is difficult, but not really impossible. Common sense applies. You need to have decent credit, a job and some savings. You must let your mortgage professional guide you through the twists and turns and show you the path to the finish line. If you help me help you and remember that we are all going for the same goal, then you will help make the impossible, possible.
By the way, this message will self destruct in…well, you get the idea.
In this video, Chad talks, in general terms, how the credit markets affect the mortgage rates. If you have comments on what he’s talking about or want to know more, email him at chad@chadstallings.com or visit his web site at www.loanbychad.com
19
May
10
Video: Greece is the word!
Rates are great!! Right now 30yr fixed rates are back to the mid to high 4% range. But how did this happen you ask? They were supposed to go up once the Federal Reserve Board discontinued their purchasing of Mortgage Backed Securities right? Well, yes, but no. One thing that you must remember is that, for better or worse, bad news is good news for mortgage rates. So when a volcano decided to go off and mess with travel in Europe, rates fell a bit. Then the whole Greece problem arose and therefore sent a stir through the financial markets worldwide hence low rates (I am going to do a blog on this process tomorrow).
If you are unfamiliar with the Greece situation, I have attached a brief video from Jon Vaala. He puts the whole thing in easy to understand terms and its interesting to watch. You can click on “YOU TUBE” on the vid and it will take you to his channel. This situation just goes to show how we are all affected by things that occur across the globe.
Enjoy the video and if you think this guy is crazy or have any comments on this topic you can email me at chad@chadstallings.com or visit my website at www.loanbychad.com
30
Apr
10
The Fed and You!
The Federal Open Market Committee met yesterday and voted 9 to 1 to leave the Federal Funds Rate at zero. This was expected as was the plan to keep it there “for an extended period.”
The question is, what does this mean to you?? Well, first and foremost the Federal Funds Rate (FFR) is what banks charge to borrower money from one another. It does not directly affect consumer rates on items like auto loans, credit cards and most importantly mortgage rates.
Mortgage rates are effected more by the movement of Mortgage Backed Securities and the bond market. An easy way for the general consumer to get a feel for what rates are doing is to know that any good economic news will generally make mortgage rates go up and any poor economic news will generally cause mortgage rates to go down. Of course this is a very simple and easy way to look at it.
I still feel that barring any major geopolitical events, mortgage rates will remain in the 5% range at least through the summer. If you think differently, email me at stallingschad@aol.com
Until next time….
