According to details released by Fannie Mae; today, Dec. 1st. is the first day applications can be taken for the New Obama Refinance Program. This program is an updated version of the HARP program The Federal Housing Finance Agency (FHFA) and the Department of the Treasury introduced in early 2009 as part of the Obama Administration’s Making Home Affordable program. HARP as it is more commonly referred to as provides borrowers a mortgage weapon in this horrible housing market war. There are incredible changes that will help home owners take advantage of this current low mortgage rate environment. Let's take some time and review them. Which borrowers may be eligible for an enhanced HARP? In general, borrowers must meet the following criteria: The mortgage must be owned or guaranteed by F... 12/01/2011

People looking to get pre-approved for a FHA refinance or a purchase just maybe in store for a surprise. FHA has announced as of November 18th. The House and the Senate have decided to restore the $729,750 loan limit on FHA insured mortgage for another two years. As far as Fannie Mae and Freddie Mac mortgage limits go, they have decided to leave that maximum loan limit unchanged at $625,500.  FHA loan limits are designated by county so in the  hundreds of counties the law makers are essentially  raising the local benchmark to 125% of the median house price from 115%.  The benchmark dropped down to 115% at the end of September. At the beginning of this crisis Congress increased the loan amounts to stimulate the rapidly deflating housing market, those temporary loan limits expired Septemb... 11/15/2011

So often when I am reviewing loan disclosures with a client they get confused with what the heck APR is. It's a sort of sticker shock when they see that it's different from the interest rate we had discussed. I'm hoping that this will give everyone a little insight into frustrating little acronym known as A.P.R. What is A.P.R.? A.P.R. stands for Annual Percentage Rate.  And with that ladies and gentlemen the confusion starts. Most borrowers look at their mortgage paperwork & see “percentage rate” and assume that the A.P.R. is their interest rate (or note rate). In fact, the A.P.R. is NOT your mortgage interest rate and is NOT the rate that is used to calculate your monthly mortgage payment. So what is A.P.R. and why do we need to know, or even care what the APR on a mortgage loan is? Si... 11/14/2011

A Standard Home Inspection in Worcester MA is performed to the MA Home Inspector Standards of Practice. The best home inspectors in Worcester MA perform inspections to the Standard.  Excellent home inspectors exceed the Standard. Ask your home inspector how they exceed the standard.WAVE Inspection Services is a full service inspection company serving Massachusetts, Rhode Island, and Connecticut. We provide the following services: Home Inspections Continuous Radon Monitor Testing Water Quality Testing Water Quantity Testing Ariel Photography (UAV, Drone) Call 508-796-1118 to schedule a Worcester MA home inspection. 11/11/2011

10/28/2011

Hi everyone, Up here in Worcester, MA we are easily reminded every year about this time of the changing seasons. The beautiful autumn colors are in the air and the Jack Frost is right around the corner. Now is a great time to review your plumbing and heating systems to make sure everything is in working order before you have to actually use them on a full time basis. Turn on the heat to ensure it is working Schedule a furnace/boiler cleaning Turn off and drain all outside faucets For all central air conditioning systems, try pouring antifreeze or windshield washer-fluid in the condensate trap   For Oil Burners Do the Following Clean the burner assembly Charge the burner nozzle Clean the fan Clear the oil line Change oil tank filter Change pump strainer Clean flue and between boiler sect... 10/20/2011

Are we starting to break the downward trend or is this recent rally in the market and bump up in rates just a blip on the charts? After rates touching under 4% as a national average on a conventional mortgage, according to Freddie Mac, the stock market is in rally mode and rates have started the move towards 4.5%. Still an amazingly low rate but if you were one of those people floating your mortgage rate in hopes of that magical 3.5% you might have wished your way right back over 4%.   The stock market has had a big jump off the lows of about a week ago and better the expected jobs numbers on Friday along with upward revisions for August has kept us rallying through today. The bond market was closed today because of the Columbus Day holiday, so the money that was moving into the market ... 10/10/2011

Classes start on Tuesday September 20, 2011 for MA Home Inspector Training in Worcester, MA. Start Date: September 20, 2011Class Days: Tuesday and ThursdayClass Times: 6:00 pm to 9:10 pmCost: $1,000 - $1,015 (75 hours)Visit Worcester Adult Education on the web at the Night Life Catalog for details and registration. (508) 799-3171 This course meets the training criteria in 266 CMR for an Associate Home Inspector application. Registration is open to the public.   09/06/2011

I attended the seminar, read the book, teamed up with an amazing buyer's agent, and put the plan into action. What transpired yesterday was more than a house warming party, it was a fun, personal ,relationship building experience. I had recently attended a seminar by Michael Maher, the #1 best selling author of the book 7 Levels of Communication. Michael is a top real estate professional in the Kansas City area. He has built his business on cultivating long term relationships and connecting people. His nationwide tour Generation Generosity made a stop in Maine a couple of months ago and I was lucky enough to attend. He takes a whole new approach to real estate sales, by going from relationships to referrals. In these challenging financial times, we have to find new ways to monitor our ... 08/26/2011

Mortgage Buddy Rate Outlook This week looks to be more of the same choppiness in the stock market, with perhaps a little less volatility. There is a lot of continued uncertainty in Europe with their debt issues and the reality of a global slow down has pushed investors into gold and bonds. The silver lining in all of this is that we continue to have downward pressure on interest rates and they remain at historic lows. There are a few economic data points this week to pay attention to: Tuesday 10am New Home Sales: New home sales measure the number of newly constructed homes with a committed sale during the month New home sales measure the number of newly constructed homes with a committed sale during the month. Rates are low but does it matter enough to get the new homes moving? Or is it... 08/22/2011

This is the second installment of utilizing all of the approved FHA guidelines available. I mentioned yesterday http://actvra.in/gSf I want to make everyone aware of the many ways they can help their client with creative ways for coming up with the 3.5% down-payment required on a FHA purchase. Yesterday we talked about "sweat equity". Today we are going to discuss "rent credit". Rent Credit as Described By FHA Guidelines: The cumulative amount of rental payments that exceed the appraiser's estimate of fair market rent may be considered accumulation of the borrower's cash investment. The endorsement package must include the rent with option to purchase agreement, and appraiser's estimate of market rent. Conversely, the underwriter must treat the rent as an inducement to purchase, with an... 08/16/2011

So many times we hear excuses why things won't work, and it's our job to present options that do work This week I'm going to be showcasing different ways to meet your the 3.5% FHA mandatory requirement for down payment. There are many ways that we all know about but in a world of higher commodity prices and less in our paychecks, it's becoming harder and harder to save money to buy a home. My hope is that we can think outside the box and work to increase home ownership for hard working Americans who just can't save as easily. All of the different ways I will highlight are FHA approved measures, but keep in mind to check with your individual bank to see if there are any overlay restrictions. What I means is there are set approved underwriting guidelines that are released by FHA and then ... 08/15/2011

Last week was absolute insanity in the market. Up down around. Trillions upon trillions of dollars of market capital was lost. The aftershocks of the debt downgrade, Euro debt fears, and the realization of an overall global economic slow down drove the volatility through the roof. The fed last Tuesday vowed to keep the rates low until the middle of 2013. This was a change from what they had previously stated or didn't state with their "extended period language". This week is loaded with economic data and we could be in a world of hurt at the end of the week or we could be on our way back towards a market rally. My gut says the data won't be strong but I'm hoping its just strong enough to keep us flat. Let's take a quick look at the economic calendar for the week. Monday Aug 15 Tuesday A... 08/14/2011

The lender must document the transfer of gift funds from the donor to the borrower.   The table below describes the requirements for the transfer of gift funds. If the gift funds ...Then the lender must ... are in the borrower's account obtain   a copy of the withdrawal document showing that the withdrawal was from the donor's account, and the borrower's deposit slip and bank statement showing the deposit. are to be provided at closing, and are in the form of a certified check from the donor's account obtain a   bank statement showing the withdrawal from the donor's account, and copy of the certified check. are to be provided at closing, and are in the form of a cashier's check, money order, official check, or other type of bank check have the donor provide a withdrawal document or canc... 08/12/2011

 Please Let Me Help You, Your Family & Your Friends Take Advantage of These Rates John Saari "The Mortgage Buddy" 508-740-7445 What an absolute crazy week in the stock market and in the mortgage industry. The Fed said yesterday that they are going to keep interest rates low until the middle of 2013. That's absolutely fantastic news for the housing market. The hope is that the economy can grow itself back to dominance with more job growth, and at the same time keep the rates attractive enough to clear out some of this inventory. It's also the best time ever to refinance. If there are still people out there who for whatever reason have not taken advantage of this low interest rate environment the time is now. 30yr fixed rates are at 4%. That's absolutely amazing. I have been working 14 ho... 08/10/2011

I Found a Great Bike at Barney's Bicycle in Worcester MA   A big shout out to Barney's Bicycle in Worcester, Massachusetts! Barney's Bicycle165 Chandler StreetWorcester  MA  01609(508) 799-BIKEbarneys@e-barneys.com     In the course of training for a triathlon, I was looking for a bike to take the place of my old mountain bike.  I'd been around to various bike shops in the area, and my budget just did not support a shiny, new road bike.  After searching such sites as eBay and craigslist for a used bike, I discovered Barney's Bicycle.  Barney's Bicycle carries new and used bicycles for riders of all ages and abilities.  When I visited the shop, the owner, Peter Howard, made several recommendations for me.  I eventually selected a 2-year-old Giant, a lightweight hybrid, and I am absolutel... 08/08/2011

The Mortgage Buddy Rate Outlook for the Week Beginning August 8th This is going to be one of those weeks for everyone who has ties to the financial industry in one way or another. Are we on the verge of a double dip recession? If we look at the earnings reports and jobs numbers, no. Even though the jobs numbers are anemic at best at least they are in the green. A little better than expected report on Friday gave the markets a collective sigh of relief, only to be followed up with a O NO, on the credit downgrade. Most everyday traders believed we were going to get a downgrade anyways so I really think most of that has already been worked into the numbers. By looking at the overnight futures market we could be down 200 Dow points at the open but, I don't think it's that bad. The market ne... 08/07/2011

So today at around 130pm. The credit rating agency Standard & Poors sent over to the White House and the Treasury Department their report that they were to down grade the AAA rating of the US debt one notch. The treasury quickly reached back to S&P to dispute the method of calculation, but, even though S&P agreed they made an error they felt the downgrade was still warranted. Yes this is the same rating agency that was one of the major contributers to the financial crisis of 2008. They would bundle just enough A paper mortgages with sub-prime mortgages to give them a AAA credit rating so they could be sold for top dollar on the secondary market. This is the same S&P that is always late to the show when downgrading a country, yet quick to react when they can make money of their AAA stamp... 08/05/2011

I mentioned in a previous post that I'm not the "education coordinator" for my local BNI group. For those unfamiliar with what BNI is, it stands for Business Networking International. It's a group for like minded business professionals and business owners to meet once a week and exchange business ideas, and hopefully referrals. It has it's own little chapter government with a President, VP, Treasurer, etc. As the education coordinator I talk about ideas to build business and referrals. I have decided to make my education minute a weekly challenge or task for my chapter members and I have taken the idea and implemented it in my office as a way to grow the mortgage business of my colleagues. I'm going to take the weekly task and add it as a weekly post for "The Mortgage Buddy" on activer... 07/31/2011

The Mortgage Buddy Rate Outlook for the Week Beginning 8/1/11 Rates are going to revolve around two major factors this week. The Debt Ceiling talks and the July Unemployment report on Friday. There was major debate over the last week as to what was going to happen to the bond market with the uncertainty of how quickly Washington was going to get their act together and raise the debt ceiling. Instead of mass exodus from treasuries we saw just the opposite, a flight to safety on the heels of a week GDP report on Friday. The economy is moving a long a turtle's pace of 1.3% growth. Our only hope is that the tortoise always wins the race. The other major component is the jobs report on Friday. I'm expecting this to be very week and start to push the unemployment rate up towards 10% again. Th... 07/31/2011