Rates
Another week and another movement in rates for the better.
Russia is still playing cat to the Ukraine mouse, dropping troops over into Ukraine and causing more and more chaos in the European Stock Market.
EU is taking their money and dropping it into US stocks and US bonds, it is actually odd for the bond market and the stock market to both improve.
This week, based on US data, rates should of once again worsened:
-Homebuilder Sentiment 55 vs est. of 53
-Building permits up 1.052M vs est. of 1.0M
-Housing starts 1.093M vs est of 970K (huge #)
-CPI or consumer inflation 0.1 vs est of 0.1
-Weekly jobless claims 298K vs est of 300K (Watch this number!)
-Existing home sales 5.15M vs est. of 5.01M
-Consumer confidence 92.4 vs est. of 89.0
So basically ALL economic news this week was AWESOME, especially the housing date, which blew expected.
For you newby's, Red is BAD Green is GOOD
We are at 2014 lows for interest rates, so I am telling people if they have the guts to float, but for those who don’t like to gamble, we really can complain too much about these rates, especially since we should be in the low 5’s right now, based on US economic data.
RD Changes
Rural Development on 10/1/2014 is going to increase their Monthly MI from .40% to .50%, not a huge increase, but still an increase. Will affect a $100,000 loan by $8.33 per month.
Link to my RD website here: http://www.375loan.com/loan_products/rd_home_loan/
On the Web Site is link to Flyers and Eligiblity Map for the Treasure Valley and another one for Idaho
Student Loans
We have been seeing quite a bit of changed to lending guidelines with regards to how student loans are calculated into a Debt to Income ratio.
Even if the student loan is deferred, it may have to be counted into the debts, which may prevent some people from qualifying.
Also, for Income Based Payment, lenders are requiring that borrowers be qualifed on FULL payments, not the reduced payments.
And In School deferrments are being ignored and the borrower will have to qualify on FULL payment also!!
Student loans are becoming a HUGE burden on people and with more and more people getting them, it is starting to affect housing.
Make sure you are asking!
New Good Faith/Truth in Lending
<11 months left for the roll out of the new TIL/GFE law.
CFPB has been doing some online trainings, and looks like the biggest concern is the notion that the borrow HAS TO HAVE all documents 3 days BEFORE they can fund and record the loan. Which means the chances of doing SAME DAY funding is out the door!!
I am sure they are going to clarify this even more, but my gut feeling is they are going to make us sign and let the borrower sit on the file for 3 days, business days I might add, before we can fund and record.
Don’t forget…..
There is LOTS of 100% financing option available, so borrowers have to bring in little to ZIP at closing.
I have set up a web site here, and will be adding to it: http://www.375loan.com/loan_products/downpayment_assistance/