The number of home owners who find “strategic default” socially acceptable is growing in most states. Last year, 27 percent of foreclosed home owners say they strategically defaulted on their mortgage. Strategic default is when a home owner is financially able to make their mortgage payments but decides to stop, usually because the property is underwater. For those who decided to walk away f...
Young, first-time buyers are struggling to purchase a home. With low
inventories of homes for sale, young first-timers are finding themselves
competing against other bidders who are willing to pay cash. Meanwhile,
many young buyers are having trouble qualifying for a loan, often due
to high student loan debt.
Overall, young buyers have been left out of the housing recovery more
Budgeting to Buy a House
No matter how good the credit rating, today's homebuyer no longer has the
luxury of buying with little or zero down. Unless you are low-income with good
credit, or a veteran, no-down loans are also a thing of the past.
Most lenders today want at least 20 percent of the loan amount as a down
payment on a house. For a home priced between $168,300 and $287,500, ...
When reviewing their credit reports, one in five consumers are likely to receive a different credit score from what a creditor will use to price a loan, according to the Consumer Financial Protection Bureau. The discrepancy has the agency concerned. Lenders use credit scores to help determine the interest rate they’ll charge customers—with higher credit scores often receiving the best rates. “Many...
The rising insurance rates on Federal Housing Administration
mortgages are putting home purchases “increasingly out of reach” for
many qualified buyers who rely on FHA financing, National Association of
REALTORS® President Steve Brown wrote in a letter to FHA Commissioner
Carol Galante. In the letter, Brown urged FHA to lower its annual
mortgage insurance premiums.
By 2039, commercial real estate is expected to be thriving. But over
the next 25 years, it will be greatly influenced by changes in
demographics, technology, globalization, and economic and environmental
realities, according to CNBC.
Commercial practitioners gave CNBC several “bold” predictions for the U.S. commercial real estate sector by 2039:
The fading away of shopping mal...
Energy industry representatives are increasingly making an offer to home owners across the country: Let us drill for your natural gas on your land, and we’ll pay you for the lease.
The offer is increasingly being made to home owners in Texas, Pennsylvania, and New York. Drilling officials say home owners can earn extra income that can be used to pay off their mortgages and that the gas roya...
a Short Sale Can Impact Your Credit Score
While the United States
housing market improved in 2013, at the end of the year 19% of homeowners with a mortgage owed more on their
mortgage than the value of their home.
For homeowners with no
plans to move and who can comfortably afford their mortgage payments, being
underwater certainly can be frustrating. However, those homeow...
Vacation home sales rose strongly in 2013, while investment purchases
fell below the elevated levels seen in the previous two years,
according to the National Association of REALTORS®.NAR’s 2014 Investment and Vacation Home Buyers Survey,
covering existing- and new-home transactions in 2013, shows
vacation-home sales jumped 29.7 percent to an estimated 717,000 last
year from 553,000 in 2...
With the initial Tax Filing Deadline coming up tomorrow, on April 15th, purchasers of second homes should be aware that, according to the IRS, taxpayers who are married and filing jointly can’t deduct interest on more than a combined total of $1 million of “home acquisition debt” for a primary and a secondary residence.Taxpayers also may deduct up to a combined total of $100,000 of home-equity deb...
unexpected increase in producer prices, the past week was highlighted by
concern over persistently low inflation. Minutes of a Federal Reserve
committee meeting showed that policymakers are leery of continued low
prices, which they believe suggests a slowdown in global economic
Federal Reserve officials expressed concern over this continued low
inflation, a situatio...
A majority of more than 100 economists and real estate experts say that home prices appreciation in U.S. home prices to be about 3.5 percent in 2014.But with the rising home prices, 56 percent of the economists surveyed had more modest predictions for the home ownership rate. More than half of those surveyed say that in five years the U.S. home ownership rate will likely drop below 65.4 ...
If and when Congress shuts down Fannie Mae and Freddie Mac, borrowers likely
will end up paying slightly higher mortgage rates. Proposed House and
Senate bills would wind down the two firms over five years and scale
back the government intervention in guaranteeing mortgage securities.The House GOP bill would virtually privatize the mortgage market,
while the Senate's bipartisan plan ...
Deciding what type of home loan is best for your needs might be the most trying part of the home-buying process. Your decision involves seven components.
1. Loan amount
The amount that you qualify to borrow depends on your income, expenses, down payment, and current mortgage rates. Most importantly, it should be an amount that you’re comfortable borrowing.
2. Mortgage features
There are sever...
Fewer first-time home buyers are obtaining mortgages with down
payments of 6 percent or less, according to the National Association of
REALTORS®’ latest Confidence Index Survey. In February, 61 percent of
REALTORS® reported that their first-time buyers had obtained mortgages
with 6 percent down or less compared to 74 percent of REALTORS®
reporting the same in 2009.
“Along with the re-em...