Tax Tip #7: Home Equity Loans

This is the last tax tip in this series of posts. Thank you for reading. If you have more questions, we urge you to seek the counsel of an experienced tax professional.

#7:  Home Equity Loans

Unfortunately in this economy, people sometimes need to take out a home equity loan to pay for things other than their home that they couldn't normally afford, such as tuition. Can you get a tax break for that? Perhaps. It depends on the situation. Part or all of the interest that you pay on the loan could be deductible for up to $100,000 ($50,000 if you are married filing separately).

The amount that you can deduct interest on is the difference between what your home is worth and what you owe on your mortgage. (Example: if your home is worth $250,000, and your mortgage is worth $200,000, you are able to deduct interest on $50,000. If you take out a loan larger than that, such as $80,000, you cannot deduct interest on the extra $30,000.)

If you are faced with the alternative minimum tax (AMT), you won't be able to deduct any of the interest on a home equity loan. This applies if you use the money for tuition or something else not related to your property.

If you did use the money to renovate and improve your property, you will be able to deduct all of the interest whether you are faced with the AMT or not. (But still only the $50,000, not the full $80,000, as per the example above.)

Click here to view Tax Tip #6.

Once again, if you have any questions about your own specific mortgage situation, call us at 877-828-8851. We can help!

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Is your Lender Licensed or just Registered? What's the difference?

When you have found the perfect home and are ready to go through the mortgage process, you will need to contact a loan originator. What many people don't know is that there is a big difference between a State-Licensed Mortgage Loan Originator and one that's only been registered. If they have been state licensed, then they've also passed a series of exams and received their own NMLS number. If your lender does not have an NMLS number, they're most likely registered under their Lending Institutions License and may not have completed the training to be officially licensed in their state.

As of July 1, 2010, new policies were set in place that require Mortgage Bankers and Brokers to be licensed through the Nationwide Mortgage Licensing System. The requirement for being licensed includes passing state and federal tests, background checks, finger printing, pre-eduation and continuing education. They must complete 20 hours of educational classes and pass two separate and lengthy tests.

If they've failed the test, they must wait 30 days before retesting. If you fail 4 times, you have to wait 6 months. Those that are simply registered do not have any of this. The Secure and Fair Enforcement for Mortgage Licensing Act of 2008, or the S.A.F.E. Act, requires the Agencies to maintain a system for loan origination to protect consumers. Some 60% of registered lenders do not pass their exams. Before you begin working with an originator, take the time to check if they are correctly licensed by visiting the NMLS consumer access page.

You can also call us at Crosscountry Mortgage if you have any questions. 877-828-8851.

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Update on Pending Home Sales in November

According to the National Association of Realtors, the month of November saw some stabilization where pending home sales are concerned. They received a slight gain. There were also some monthly increases in the South and the West that managed to make up for certain declines in the Northeast and the Midwest.

Have you ever heard of the Pending Home Sales Index? Well, if not, it is based on contract signings of existing homes on a large national sample that makes up about 20% of all transactions in the country.  According to that index, the number of signings increased by 0.2% to a score of 101.7 in November. Keep in mind that it does not account for closings, just contracts. This is good news for the economy.

NAR's chief economist, Lawrence Yun, had plenty to say about the market in a recent interview. He said, “We may have reached a cyclical low because the positive fundamentals of job creation and household formation are likely to foster a fairly stable level of contract activity in 2014. Although the final months of 2013 are finishing on a soft note, the year as a whole will end with the best sales total in seven years.”

As of now, mortgage interest rates are a bit higher but still relatively low when compared to years past. We have also seen strong gains in home prices that add to the overall market growth that we should expect to continue to see in 2014.

The market is still kind to buyers right now which means that we could see as much as $5.1 million in existing-home sales for 2013. That figure is nearly 10% more than 2012 experienced, and it is expected that 2014 should be similar.

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Housing Market Predictions for 2014

Good news! It is predicted that through 2014, existing-home sales are expected to stay on the up and up! 2013 has been a great year full of healthy gains and that momentum looks like it will continue.

According to the National Association of Realtors (NAR), existing-home sales have show a 20% cumulative increase over the past two years! Home prices have gained 18% too!

“We’ve come off of record high housing affordability conditions in the past year, and are now at a five-year low, but conditions are still the fifth best in the past 40 years,” said Lawrence Yun, chief economist for the NAR. “While the median-income family in many areas will still be well positioned to buy a home in 2014, income is barely budging given growth in consumer prices.”

Other issues include limited housing inventories that make it hard for homeowners to find an affordable place that they love. Once they do find the perfect home, they then have to face unnecessarily strict mortgage lending standards. These restrictive policies stem from Fannie Mae and Freddie Mac's rising fees, higher premiums from the FHA, and the Dodd-Frank banking regulations.  All of these have had a negative impact on community banks. Larger banks are said to be holding on to funds just in case they are sued by the Department of Justice. This takes away from available to mortgage borrowers, thus the tighter qualification requirements.

“Although home sales have recovered over the past two years, mortgage purchase applications have been flat for the past four years, even with rising sales,” Yun said.

2014 may see a dramatic decrease in refinancings because of higher mortgage rates. It may even hit the lowest levels we've seen in 15 years! To counterbalance this collapse, purchase applications will really need to rise.  “This is an incentive for banks to increase mortgage origination, especially considering the low default rates in recent years. But even with cheap mortgages for the past four years, all-cash buyers stayed high, accounting for over 30 percent of sales,” he said.

According to Yun, the only way that higher mortgage interest rates can be tolerated is if there is an increase in job creation as well as a relaxation of restrictive lending standards. And the only way to alleviate housing inventory shortages is to have an increase in housing starts. They need to rise 50% in order to meet the underlying demand!

Right now, the best thing we can do to help the housing market is to consider purchasing a home in 2014. Lock in the lowest rate possible and pay the mortgage every month. The more stability we can individually achieve, the better the whole economy can be in the long run.

If you are in the market for a new home, give us a call at 877-828-8851. We'd love to help you get through the mortgage process and into your dream home!

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Issues the Housing Market is Currently Facing

Recently, a group of realtors pinpointed the biggest issues that are currently impacting the housing market. These are issues that could have consequences for homeowners, realtors and mortgage professionals alike!

Right now, the biggest issue concerns interest rates. Historically, low interest rates have always driven the economy and in turn the real estate markets. Since the rates have increased recently, capitalization rates could also rise. That refers to the ratio between the income produced by an asset and the cost of it. This could lead to investors and homeowners becoming more and more wary of their purchases.

Another concern revolves around healthcare. As the population continues to age, there will eventually be a demand for more senior housing. This will have an affect on available housing inventories and the building industry for both medical facilities and senior housing.

Economists have even started accounting for a future housing boom! Between 1982 and 1995, there were 80 million Americans born. They are calling this an "echo boom".  Those that fall into this age range tend to prefer urban lifestyles that are flexible and active. However, there are also plenty who prefer the suburbs. This could lead to a future need for even more mass transit for those commuting between the suburbs and the city. There will be money pouring into bike paths and public transportation, as well as homes with great locations!

Right now, commercial real estate is doing well. There have been increases in transactions for these properties and plenty of credit is available. Also, the underwriting for commercial real estate is less restricted than in the past and plenty of debt options are in place.  However, the residential market is still seeing tough underwriting rules. But the rates are still relatively low and affordability in general is high!

Extreme weather and the changing climate are another issue. Areas that are continuously affected by storms and hurricanes, like those in the path of hurricanes Katrina and Sandy, are facing changes in code and zoning standards. They are also having to pay much higher insurance premiums. All of this has a strong impact on coastal homes.

An issue that is harder to calculate includes global events like terrorism, war and debt crisis. It is hard to anticipate what could happen but economists agree that the impact of major events can lead to drastic changes. But that goes without saying.

An issue that is a bit easier to analyze concerns the increased natural gas and oil production in the US. This is having an impact on the economy and the environment. On one hand, the increase of these productions have lead to more employment opportunities and reduced America's dependence on foreign oil supply, but climate changes and potential contamination have a big affect. If there are communities in nearby areas, it could really change the value of the homes.

Lastly, technology is changing the world as we know it. Many offices and corporations are choosing to employ people to work from home. This can cause some companies to downsize their office space which has an affect on commercial real estate. With less retail space needed, there will be fewer and smaller stores. Retail demand is down across the country due to an increase in internet sales.

All of these issues have a play at this game of tug-o-war that is balancing the housing market. While the market is recovering overall, trained economists are required to keep an eye on this delicate balance.

There will be many changes in the future. Right now, some of the best advice we can give is to lock in low mortgage rates while they are still low.

If you have any questions or would like more information about how all of these issues can impact your local housing market, give us a call at 877-828-8851.

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Tight Mortgage Requirements Rough on Singles and First-Time Buyers

According to a study by the National Association of Realtors (NAR), there are still some unnecessarily restrictive mortgage lending standards in place that are not allowing some singles and first-time buyers to financially qualify for a home. These tend to have to do with tight credit requirements. Since 1981, NAR has been evaluating the demographics, preferences, motivations and plans of those who have recently bought or sold a home. This data includes only owner-occupants, not investors or vacation homes.

“Single home buyers have been suppressed for the past three years by restrictive mortgage lending standards, which favor dual-income households who are more likely to have higher credit scores,” said Lawrence Yun, NAR chief economist. “Not seen in this survey is the elevated level of investors in recent years. The housing recovery would have been much weaker without investors, who often purchase with cash.”

According to the survey, 66% of buyers are married couples. In 2010 that number was 58%. The survey also saw that 16% of homebuyers are single women but only 9% are single men. Compared to 2010's 20% single women and 12% single men, the data shows that the overall market share of single buyers has declined from 32% in 2010 to 25% in both 2012 and 2013.

“Given that mortgage interest rates are expected to gradually rise, we need greater access to credit for a sounder housing recovery," said Yun. "Affordability conditions remain favorable in much of the country, but consumers need access to safe and sound financing, particularly the 30-year fixed-rate mortgage, and with low downpayment options for first-time buyers."

When looking at the averages that date back to 2981, it shows that 4 out of 10 purchases come from first-time buyers. In 2012, first-timers accounted for a 39% market share, but that number has slipped to 38% this year. This means that there are fewer first-time buyers in today's market than average. It is important to note that first-timers are very important for the housing market's recovery because they are the ones that help existing home owners to sell.

If you are in need of a home soon, we can help! If you are a single and/or first-time buyer, please don't hesitate to call us! We'd love to do everything we can to help you get into a home! Call Crosscountry Mortgage today at (877) 828-8851.

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Impact of the Shutdown on the Mortgage Industry

As the government shutdown is nearing its end and its employees have a chance to get their jobs back, many are wondering about the effects that the shutdown has had on the mortgage industry. Beyond those who were furloughed being unable to make money, many others were unable to purchase homes or get a mortgage due to the IRS being unable to process the 4506-T form. Additionally, USDA loans were on pause during the shutdown as well.

“Outside of the obvious process impacts of submissions, approvals and income there are immediate and lingering tangential impacts to housing and housing finance markets. With over a decade of shenanigans by members of Congress who are not doing their jobs, the consumer and investor uncertainty continues to restrain any meaningful recovery,” said Mark Dangelo, president, MPD Organizations. “Without the extraordinary impacts of the Federal Reserve, the economy would be at zero growth from its 2009 levels and joblessness would have remained at over 8.5 percent.”

Because of the shutdown, it has become a major problem that loans were not making their way to borrowers and that forms were delaying the sale of homes. Everyone who was in the process of buying or selling was essentially put on hold. Specifically, those who needed an IRS verification of income were stopped in their tracks. Mortgages that were beyond that stage and were scheduled to close during the shutdown may have been able to do so but the mortgages in the beginning stages definitely suffered.

Ultimately, even once the shutdown is completely over and everyone is back at work, there will no doubt still be a delay due to the amount of paperwork that has piled up.

“There may be a trickledown effect for anything that may have started the process during the two weeks of shutdown. My guess is now that the shutdown has been ended, they will get back to the way things have been, a relatively positive outlook for housing and lending ... especially purchase transactions,” said  Gregory Teal, president and CEO at Ernst Publishing Company.

Has your mortgage been effected by the shutdown?

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Freddie Mac on the Government Shutdown

Freddie Mac is allowing borrowers who are not being paid as a result of the government shutdown to still have their mortgages delivered to Freddie Mac as long as they meet all the usual requirements and the borrower is expected to return to work after the shutdown ends.

"We're issuing this guidance to help ensure the continued smooth operation of the mortgage market during the temporary shutdown of the federal government. Today's bulletin is intended to give lenders the certainty to continue approving and delivering new mortgages that meet Freddie Mac guidelines to eligible borrowers, such as federal employees and contractors," said Dave Lowman, executive vice president, Single-Family Business at Freddie Mac. "During the temporary shutdown. We are also reminding servicers of our forbearance options to assist qualified homeowners with Freddie Mac mortgages to minimize the shutdown's impact on our nation's families and communities."

Freddie Mac will continue monitoring the current situation and promise to provide guidance if the shutdown lasts for a prolonged period of time. Right now, they have relief policies available to both public and private sector employees who are affected by the shutdown. This allows servicers to provide forbearance to eligible borrowers that must not be reported to credit bureaus. The forbearance can range from 3 to 12 months.

Servicers can also accept a borrower's most recent signed federal tax return even though the IRS is unable to process forms right now. This is helpful when tax information is needed to evaluate a borrow for a loan through Freddie Mac.

As always, Quest Loans is here to answer any questions you may have regarding the mortgage industry during this shutdown. Call us at 888-883-5252 anytime!

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What The Shutdown Means For The Housing Market

Since Tuesday morning, many government services were shut down or cut back. Congress is battling back and forth trying to resolve their issues. This is the first government shutdown in 17 years. "Essential employees" are still allowed to work but as many as 800,000 "non-essentials" are not allowed in government buildings and they don't know when they'll be paid again.

As you may know, the central issue being debated is Obamacare.  According to House Speaker John Boehner (R-OH), "The House has voted to keep the government open, but we also want basic fairness for all Americans under Obamacare."

While 800,000+ employees are on the sidelines, the members of Congress are still working and because of the 27th Amendment, all 533 of them are still being paid.

President Barack Obama has said "the idea of putting the American people's hard-earned progress at risk is the height of irresponsibility, and it doesn't have to happen. Let me repeat this. It does not have to happen."

Congress and the President continue to disagree and have yet to reach a resolution. What does this mean for the housing industry? According to the president of NAMB- The Association of Mortgage Professionals, Don Frommeyer, "the shutdown isn't going to help the U.S. economy continue to grow and interest rates across the board could very well increase, depending on what the bond market does during this time."

As of September 27th, The U.S. Department of Housing & Urban Development (HUD) has indicated that the FHA will continue to endorse single-family loans during the shutdown. Of their 8,709 staff members, only 349 of them are "essential" and continue to work. However, an even more limited number of FHA staff is allowed to do their underwriting and approve new loans. So right now, anyone in the process of purchasing a home may see delays since the shutdown will cause these processes to take much longer than usual.

Those facing foreclosure right now will still have loss mitigations continue but the FHA will not approve any lender applications right now.

If you have any questions about how the shutdown could be affecting your mortgage process, feel free to call your loan officer or give us a call at 888-883-5252 and we will try our best to answer your questions!

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Mortgage Default Rates Drop as Economy Improves

As the economy continues to improve, consumer debt continues to decline. Because Americans now have less debt overall, consumer default rates have decreased for mortgages and automobiles alike! This means that the financial condition for consumers is getting better as the economy stabilizes.

The national default rate for mortgages fell to 1.31 percent in the month of April, which is down from 1.41 percent in March.  This data is according to S&P Dow Jones and Experian Consumer Credit. They've worked together to build a comprehensive measure of the changes in consumer credit defaults. Mortgages are doing well, but bank cards saw a small increase in default rates.

Unemployment rates are still somewhat high, but the good news regarding the decline in default rates indicates that the recession is truly behind us. Some cities have reached new post-recession lows in regard to default rates.

If you feel you are in danger of defaulting on your mortgage, seek financial help! Perhaps refinancing could save you from your situation. View the links to the right for information on a couple companies that we'd recommend!

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Rates Rising: Lock It In While You Can!

After weeks of falling, the mortgage rates have recently rose to their highest point in six weeks. Previously pressing to set record-lows, the current mortgage rates for a 30-year mortgage are averaging 3.51 percent.  The average 15-year rate also increased to 2.69 percent.

Earlier this month, the 15-year rate set a record-low at 2.56 percent. Last November saw the lowest rate for a 30-year mortgage with an average of 3.31 percent. Most recently, we saw 3.35 percent.

With the rates steadily climbing again, we tend to encourage borrowers to lock in these somewhat low rates while they can. There is no guarantee that they will drop again since the housing market is recovering and home prices are increasing. There is an increased demand for homes due to a tight inventory. The whole market seems to be growing more and more competitive. Home buying season has been strong and moderately priced homes are selling fast!

California currently holds 8 out of 10 spots on the list of markets with the largest increase in median list price throughout the country. This means that these markets were hit the hardest by the crisis and are in turn rebounding the highest now that the housing recovering is gaining momentum.

Visit the links on the right side of this page to find the right company for you.

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HUD Will Sell Thousands of Delinquent Mortgage Loans

Although the economy is improving, there are still many severely delinquent mortgage loans. HUD plans to sell 20,000 distressed loans that are insured by the FHA in an effort to deepen the inventory and bring relief to areas hit hard by foreclosure.  Its Distressed Asset Stabilization Program (DASP) will help with the sale of these loans and help to stabilize the nation's communities.

HUD has sold delinquent loans before, and previously did so by conducting note sales. There are two auctions planned, one for June 26th that will handle the sale of 15,000 notes through "national pools" and another auction on July 10th that will offer 5,000 notes through Neighborhood Stabilization Outcome (NSO) pools. The NSO pools allow qualified bidders notes located in Southern California, Chicago, Southern Ohio, and North Carolina. In addition, HUD is expanding the use of single-family loan sales by including a competitive bidding process in which loan pools are sold to the highest bidder.

“We’ve seen a tremendous response to our note sales which allow us to support particular areas of our country hard-hit by foreclosures while improving outcomes for FHA,” said FHA Commissioner Carol Galante. “These auctions allow us to continue stabilizing hard-hit housing markets and to improve FHA’s overall financial position at the same time.”

HUD expects to sell more than 40,000 distressed loans this year. These sales will help to reduce the FHA's total claims costs and increase recovery on any loses the FHA may have experienced regarding their Mutual Mortgage Insurance Fund.  The severely delinquent FHA-insured loans will be sold competitively at a market-determined price. Generally, the price will be well below the outstanding principal balance. When the loan is purchased, foreclosure is delayed for six months and the new servicer has time to help the borrower find an affordable solution to avoid foreclosure.

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Record or Near-Record Low Mortgage Rates!

The economy is still gradually improving day by day, and that may mean that you are making more money now. Or maybe not. If you are in need of lower monthly mortgage payments, now would be an excellent time to refinance!

Just this week, the fixed mortgage rates have once again dropped! In fact, the 15-year average rate hit a new record low of 2.56%!!  The 30-year record low mortgage rate is 3.31% and the current rate has dropped down to 3.35% which is almost as low as it could be!

As mortgage professionals, we want to take the time to encourage you to seek more information about refinancing your home. Right now is a great time to take advantage of the low rates! The economy is strengthening and the rates continue to fall for the 5th consecutive week.

"Mortgage rates eased somewhat following the release of the advance estimate of real GDP growth for the first quarter of the year, which rose 2.5 percent but fell short of the market consensus forecast. The latest GDP report confirmed that the housing sector has become an important contributor to the economic recovery,” said Frank Nothaft, vice president and chief economist of Freddie Mac. “Residential fixed investment added to overall economic growth over the past eight consecutive quarters and contributed more than 0.3 percentage points in growth over the first three months of this year. Moreover, near record low mortgage rates should further drive the housing market recovery over the near term."

Take a look at this mortgage rate chart (brought to you by Freddie Mac).

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Payout to 4.2 Million Borrowers Beginning April 12th

There was an agreement between the Office of the Comptroller of the Currency (OCC),  the Federal Reserve Board, and 13 mortgage servicers that will make payments to 4.2 million borrowers starting April 12th. This agreement will provide $3.6 billion in cash payments to homeowners that have found themselves in any stage of foreclosure in 2009 or 2010. Those defaulted loans must have been serviced by by one of the following companies or their subsidiaries  Aurora, Bank of America, Citibank, Goldman Sachs, HSBC, JPMorgan Chase, MetLife Bank, Morgan Stanley, PNC, Sovereign, SunTrust, U.S. Bank, and Wells Fargo.

The checks will be sent in several waves starting with 1.4 million checks being sent out on April 12th, and ending sometime in mid-July 2013.  The payments are expected to range from $300 to $125,000. There will be a bit of a delay for borrowers whose mortgages were serviced by Goldman Sachs and Morgan Stanley, but information regarding this is not yet available.

Borrowers who qualify to receive this servicing settlement payout can expect a letter with an enclosed check sent by the paying agent, Rust Consulting, Inc. Rust previously sent postcards to the 4.2 million borrowers to notify them about their eligibility. If you received a postcard but need to update your contact information, call Rust at (888) 952-9105. Any information that you provide to Rust will only be used in regards to the agreement, at the direction of the OCC and the Federal Reserve.  However, you should beware of scams. If anyone asks you to call a different phone number or to pay a fee in order to receive your payment, do not do so. Stop and call the number above. Remember, servicers are not permitted to ask borrowers to sign a waiver of any legal claims they may have against their servicer in connection with accepting a payment.

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California Homeowner Bill of Rights

Homeowners in California have been dancing on the edge of foreclosure, but now help is in sight. Attorney General Kamala D. Harris has recently announced a $1 million California Homeowner Bill of Rights (HBOR) grant to be implemented into The National Housing Law Project. This bill is a set of laws that will extend key mortgage and foreclosure protections to California homeowners and borrowers.

“Californians were hit hard by the mortgage crisis and many people are still struggling to stay in their homes,” Attorney General Harris said. “The California Homeowner Bill of Rights gives borrowers more opportunities to stay in their homes, and this grant will help make sure the law is applied across the state and that everyone gets the protection they are entitled to.”

The laws took effect at the start of 2013 and will restrict dual-track foreclosures, guarantee struggling homeowners a reliable point of contact at their lender, impose civil penalties on fraudulently signed mortgage documents, and require loan servicers to document their right to foreclose.

The goal of this grant is to maximize consumer benefits from the HBOR and minimize abuses of the law by training consumer and housing attorneys in both private and non-profit firms.

The grant will be implemented by the National Housing Law Project and its partners, the "Western Center on Law and Poverty", and the "National Consumer Law Center" and "Tenants Together."  They will be using the grant to provide training to more than 800 lawyers on how to maximize the HBOR's protections. They will be reporting the HBOR's statewide impact as time progresses.

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Two Nebraska Bills Amend Mortgage Requirements

As of March 7th, some new amendments to lender licensing rules were enacted thanks to two bills that were passed in Nebraska. They are intended to clarify the requirements for installment loan brokers, payday lenders, mortgage bankers, and mortgage loan originators. The first one is called the LB 279, (short for Legislative Bill.) It makes non-substantive clarifications to how a "loan broker" is defined. It also narrows down the exemption for accountants to certified public accountants only. Additionally, this bill gives the Nebraska Department of Banking and Finance authorization to share examination reports and other confidential information with the Consumer Financial Protection Bureau and any other relevant state regulators.

The second bill is known as LB 290 and it was designed to remove many of the mortgage licensing requirements that were previously applicable to individuals. It also identifies the duties of mortgage loan originators, including providing notification to the department within 10 days of events such as bankruptcy, criminal indictments, and suspension proceedings.  They must also notify the department within 30 days of other changes, such as changing employer and address. This bill also allows firms to submit reports electronically. It also states that the 120-day period for calculating abandonment of a license application must begin from the date that the department sends the applicant an electronic notice of deficient items.

Both of these bills are set to take effect three months after the end of Nebraska's legislative session, which falls on May 30, 2013.

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Mortgage Delinquency Rate Declines 14% in 2012

The national mortgage delinquency rate is defined as the rate of borrowers who are 60 or more days past due on their monthly mortgage payments. The amount of people who fall in this category has declined for the fourth consecutive quarter. Q4 of 2012 saw a mortgage delinquency rate of 5.19% which was down from 5.41% in Q3, and 6.01% in Q4 of 2011. Statistics aside, delinquency is decreasing. This means that as the economy continues to recover with time, more and more people are able to continue paying their monthly payments.

This was the largest yearly decline that the delinquency rate has seen since the recession officially ended, but we still have a long way to go to radically improve life for homeowners. In 2007, delinquencies rose 54%. They rose 53% in 2008 and 50% in 2009. Since then, the decline has been much more gradual than the rise was. It dropped 7% in 2010, 6% in 2011 and now 14% in 2012. We are on the right track but the overall levels are still high compared to where they sat before the recession hit.

If more borrowers can qualify for refinancing, they can obtain lower interest rates that will ultimately lead to lower monthly mortgage payments. This lends to fewer foreclosures and fewer delinquencies. If you are having difficulty paying your mortgage, Quest Loans can help you apply for refinancing. Call us at 888-883-5252 for more information, or visit QuestLoans.com!

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"The Responsible Homeowner Refinancing Act of 2013"

How would you like to be among the millions of responsible homeowners who can refinance their mortgages at a lower rate in order to save thousands of dollars each year? It's within your reach! Especially now that U.S. Senators Robert Menendez (D-NJ) and Barbara Boxer (D-CA) have introduced this legislation in the 112th Congress. It is called "The Responsible Homeowner Refinancing Act of 2013" and it plans to remove the barriers that are currently preventing borrowers from obtaining the lowest rate possible.

This bill would streamline refinancing as we know it for all of Fannie Mae and Freddie Mac's borrowers whether they are underwater or not. Up-front fees would be reduced, appraisal costs for borrowers would be eliminated, and the HARP program would be extended by one year to allow eligible borrowers to take advantage of it.

"We need to bring much-needed relief now to hard working, responsible homeowners who are struggling to keep up with their high interest rate loans" said Sen. Menendez. “We need to do this before interest rates go up again. It’s time that Congress finally put families first and give homeowners who have played by the rules a fair chance to refinance at today’s low rates."

He also adds that this will be done at no cost to taxpayers and that it is intended to stimulate the economy. It has been referred to as a "No-Brainer".

According to Senator Boxer, "this bill is a win-win!" She goes on to say, “Homeowners will have more money in their pockets, Fannie and Freddie will see fewer foreclosures, and the housing market and economy will continue building momentum. That’s why the Menendez-Boxer bill has such broad support from industry and consumer groups. We should take action on this common-sense plan immediately while interest rates remain low so American families can realize major savings.”

With the recent record-low rates for a 30-year mortgage averaging around 3.53%, you could be one of the nearly 12 million homeowners guaranteed by Fannie Mae and Freddie Mac who could refinance! There are many who are not currently able to refinance because of policies and high fees, but if the Menendez-Boxer bill goes into effect, all that red tape would be gone!  In fact, through HARP, the average homeowner saves $2,500 per year as it currently is. The bill plans on increasing that amount by expanding refinancing opportunities for all those who are eligible.

If you are ready to take advantage of the current low rates, find out if you are qualified for a loan now! Call Quest Loans at 888-883-5252 to find out when it is the right time for you to refinance! We will answer all your questions!

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Refinancing Your Mortgage Can Save You Money!

Freddie Mac has released more information that only further proves the benefits of refinancing. The results of its Q4 refinance analysis shows that 84% of homeowners who have refinanced their first-lien home mortgage either remained at the same loan amount, or managed to lower their principal balance. This helps to strengthen their fiscal house. On average, those who have refinanced were able to reduce their interest rate by 1.8 percentage points.

In December, Fixed-Rate mortgages averaged low percentages. 30-year loans were around 3.4% and 15-year loans averaged 2.7%. Because of these low rates, refinancing can help you save money on your overall mortgage. For example, when a loan for $200,000 is refinanced using these average statistics and percentages would translate to a saving of roughly $3,600 in interest for the following 12 months.

Through the HARP program, borrowers have been able to refinance when they traditionally would not have had access to it. They've obtained low rates that have significantly reduced their monthly payments. As a result, the risk of foreclosure is decreased for these borrowers since they are able to continue paying affordably.

Quest Loans specializes in HARP loans, and in refinancing.  We would like to help you qualify for an HARP loan if you have low income needs. If you already have a HARP loan, or any other type of loan, ask us about refinancing! It is never too late to start saving money on your monthly mortgage payment! 888-883-5252

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Home Sales to Rise in 2013 Despite Low Inventory

In some areas of the country, there is a shortage of homes available for sale. This low inventory is the main factor limiting the signing of contracts. Because of this, pending home sales has declined overall in December.

Despite that, the levels of home sales is still higher now than in the previous year when compared per month on a year-over-year basis. Contract activity has actually risen for 20 straight months and buyer interest remains strong too. The low inventory consists mainly of homes that cost less than $100,000 and are greatly located in the West, which means that first-time home buyers have fewer options to choose from.

Experts say that a seasonal rise of inventory may occur in the spring of 2013, however it may not bring about a seller's market. Much of the West is already a seller's market, though, for homes that cost under a million dollars, and conditions are even more balanced in the Northeast.  Existing-home sales are expected to increase 9% in 2013 which mirrors the rise of 2012.

All of this indicates that the housing market is steadily becoming stronger. If you are interested in purchasing a home this year, call Quest Loans to get the best rates and best service around! 888-883-5252.

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