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Mortgage Blog

2009 a review of the year.

January 5th, 2010 12:00 PM

Much has changed in the mortgage business over the past year or so. We are dealing with new regulations, new stricter guidelines for loans, new licensing and continuing education requirements, new appraisal guidelines (HVCC), bank closings, home foreclosures, decreased property values, FNMA AND FHLMC being taken over by the Fed and MI companies filing bankruptcy. Meanwhile the FBI has shut down some companies for fraud, etc.

This can add to our stress level and add time to the loan process, as well as additional costs to the lender and borrower.

In light of all this, you still have 30 year fixed rates in the low 5.0% range. If you can refinance, it may lower your rate and payment substantially. Home values have gone down or leveled off, so often the important question IS what is the value of your home? or do with have sales data to prove the value?

The MI companies have changed their rates due to the tough time they are having keeping above water with all the foreclosures. Speaking of being above water, the flood of June, 2009 in the southern half of Wisconsin didn't help. That added more time and appraisal reviews to get loans closed.

A year ago, loans that would have been a "no brainer" are taking more documentation and more time.

The GOOD NEWS is that rates are low. The Federal government is offering a credit to home buyers in the amount of $6500 or $8000 for first time home buyers. It's a great time to buy.

Posted by John Matthews on January 5th, 2010 12:00 PMPost a Comment (0)