Friends,(918) 520-4515 Cell
Unfortunately, I have some disappointing news to share:
The 103% financing (both Conventional and FHA) are going away, effective today. We just received the news and I wanted to be able to share with each of you just as quickly as possible.
If you have ANY clients sitting on the fence thinking they may need maximum financing, please encourage them to register their loan TODAY, as close of business today will be our cut off date.
I look forward to the opportunity and privilege to assist each of you ~ I look forward to new and better product announcements in our future.
Respectfully,
Julie Van Boening
Professional Mortgage Planner
First Mortgage Company
824 N Sycamore
Broken Arrow, OK 74012
(918) 251-9297 Office
Tuesday, December 9, 2008
Mortgage Announcement
This just came to me today from local mortgage company who offered one of the few 103% loans available in the Tulsa area. Www/darrylbaskin.com/lenders
Wednesday, December 3, 2008
Next year may surprise naysayers
Get ready for real estate rebound
Next year may surprise naysayers
By Bernice Ross, Monday, December 1, 2008.
Inman News
Will 2009 boom or will it be more doom and gloom?
Now you're probably thinking: "A real estate boom in 2009? You've got to be kidding!" While the market may not exactly boom in 2009, there are a number of factors that may signal a dramatic improvement over the next 12 months. Here's what's happening that could make 2009 better than anyone anticipates.
1. The 10-year real estate cycleAll markets are cyclical. While markets differ dramatically, a 10-year cycle is common in many places. The Southern California market provides an excellent illustration. In 1960, 1970, 1980 and 1990, the real estate market was at its lowest point plagued by excessive inventory, foreclosures and short sales. By 1994, the market had stabilized from the downturn in the early 1990s. As market values were beginning to climb, the Northridge Earthquake hit. Extensive damage throughout the area sent the market into a tailspin. It took another three years for the market to stabilize again. The beginning of the next upswing began in earnest in 1998. The market peaked in 2005 -- seven years into the cycle -- and then began the current downward trend.
Given a 10-year cycle, California should be pulling out of the bottom and be on its way to a more normal market. This appears to be happening, despite the financial meltdown. The California Association of Realtors reported a 63 percent increase in sales in September. Radar Logic reports increases of year-to-year sales (2007 to 2008) ranging from a low of 16.3 percent in San Jose to a high of 74.3 percent in Sacramento. DataQuick reports that September sales were up from a low of 29.4 percent in Ventura County to a high of 106.1 percent in Riverside County as compared to September 2007. Mike Kelly of Keller Williams Sonoma reports that his market has only two months of foreclosure inventory and about four months of short-sale inventory. Foreclosures and short-sale inventory are rapidly being depleted in other areas of the country as well. As this inventory disappears, prices will stabilize and will eventually begin to rise.
2. Pent-up demandAcross the country, sellers and buyers have been telling their agents that they are waiting for the presidential election to be over before they buy or sell any real estate. Now that the presidential election is in back of us, the bailout is in motion and the most recent stock market plummet seems to have passed, look for a substantial uptick in buyer and seller activity. People still marry, have children, retire and have to relocate for their jobs. Many of them postponed selling or buying waiting for market conditions to improve. Look for this pent-up demand to make its way into the market in 2009.
3. The credit crunch easesCredit is still tight. As one loan officer put it, "We're back to qualifying buyers the way we did in the 1980s. If you don't have a credit score of 740, forget it!" The bailout in conjunction with the new guidelines for FHA, Freddie Mac and Fannie Mae will result in more money in the system. Many credit unions are flush with cash and some are even making zero-percent-down loans to highly qualified buyers. As credit eases, buying and selling becomes easier. This will be particularly true in the jumbo market where highly qualified buyers are still having problems obtaining financing.
4. Inventory and days on market declineThe amount of inventory and the "days on market" statistics are the best harbingers of market changes. Prices always lag behind these statistics. When there is a strong seller's market with upward pressure on prices, there may be only two or three months of inventory. Price stability normally occurs when there are six to eight months of inventory. Thus, when there has been a shortage of inventory, it can take 12 to 24 months before the market recognizes that there is an oversupply. The converse is true for a buyer's market with downward pressure on prices. Unless you're tracking inventory and days on market, you may not be aware of the shift until months after it started. Currently, inventory and days on market are dropping in many areas.
5. DemographicsIn 2008, the size of Gen Y (born 1977 to 1994) surpassed the size of the Baby Boom generation. Gen Y wants to own real estate. Some researchers claim that there will be a boom in the Gen Y "Mommy Market." While members of Gen X (1965-1976) are delaying both marriage and children, the typical Gen Y mom currently has 2.7 kids. This population explosion is being lead by Latina and Asian women. Gen Y is just now beginning to hit their early 30s, the time when they are most likely to buy their first home. On the other side of the coin, baby boomers (born from 1946-1964) are most likely to buy a second or a retirement home between the ages of 50 and 60. While builders have cut back substantially on the numbers of new homes being built, an increase in future demand and a limited inventory will result in higher prices.
The question is not whether there will be another real estate boom -- there will be. The real issue is how long it will be before it starts. Watch your local market's inventory levels and days on market to see what your future will hold.
Bernice Ross, national speaker and CEO of Realestatecoach.com, is the author of "Waging War on Real Estate's Discounters" and "Who's the Best Person to Sell My House?" Both are available online. She can be reached at bernice@realestatecoach.com or visit her blog at LuxuryClues.com.
***
For financing on your home purchase or refinance, please call me.
Karen Heston
http://kheston-boklo.mortgagewebcenter.com/Default.asp?bhcp=1
918-488-7353
800-947-2655 x7353
Next year may surprise naysayers
By Bernice Ross, Monday, December 1, 2008.
Inman News
Will 2009 boom or will it be more doom and gloom?
Now you're probably thinking: "A real estate boom in 2009? You've got to be kidding!" While the market may not exactly boom in 2009, there are a number of factors that may signal a dramatic improvement over the next 12 months. Here's what's happening that could make 2009 better than anyone anticipates.
1. The 10-year real estate cycleAll markets are cyclical. While markets differ dramatically, a 10-year cycle is common in many places. The Southern California market provides an excellent illustration. In 1960, 1970, 1980 and 1990, the real estate market was at its lowest point plagued by excessive inventory, foreclosures and short sales. By 1994, the market had stabilized from the downturn in the early 1990s. As market values were beginning to climb, the Northridge Earthquake hit. Extensive damage throughout the area sent the market into a tailspin. It took another three years for the market to stabilize again. The beginning of the next upswing began in earnest in 1998. The market peaked in 2005 -- seven years into the cycle -- and then began the current downward trend.
Given a 10-year cycle, California should be pulling out of the bottom and be on its way to a more normal market. This appears to be happening, despite the financial meltdown. The California Association of Realtors reported a 63 percent increase in sales in September. Radar Logic reports increases of year-to-year sales (2007 to 2008) ranging from a low of 16.3 percent in San Jose to a high of 74.3 percent in Sacramento. DataQuick reports that September sales were up from a low of 29.4 percent in Ventura County to a high of 106.1 percent in Riverside County as compared to September 2007. Mike Kelly of Keller Williams Sonoma reports that his market has only two months of foreclosure inventory and about four months of short-sale inventory. Foreclosures and short-sale inventory are rapidly being depleted in other areas of the country as well. As this inventory disappears, prices will stabilize and will eventually begin to rise.
2. Pent-up demandAcross the country, sellers and buyers have been telling their agents that they are waiting for the presidential election to be over before they buy or sell any real estate. Now that the presidential election is in back of us, the bailout is in motion and the most recent stock market plummet seems to have passed, look for a substantial uptick in buyer and seller activity. People still marry, have children, retire and have to relocate for their jobs. Many of them postponed selling or buying waiting for market conditions to improve. Look for this pent-up demand to make its way into the market in 2009.
3. The credit crunch easesCredit is still tight. As one loan officer put it, "We're back to qualifying buyers the way we did in the 1980s. If you don't have a credit score of 740, forget it!" The bailout in conjunction with the new guidelines for FHA, Freddie Mac and Fannie Mae will result in more money in the system. Many credit unions are flush with cash and some are even making zero-percent-down loans to highly qualified buyers. As credit eases, buying and selling becomes easier. This will be particularly true in the jumbo market where highly qualified buyers are still having problems obtaining financing.
4. Inventory and days on market declineThe amount of inventory and the "days on market" statistics are the best harbingers of market changes. Prices always lag behind these statistics. When there is a strong seller's market with upward pressure on prices, there may be only two or three months of inventory. Price stability normally occurs when there are six to eight months of inventory. Thus, when there has been a shortage of inventory, it can take 12 to 24 months before the market recognizes that there is an oversupply. The converse is true for a buyer's market with downward pressure on prices. Unless you're tracking inventory and days on market, you may not be aware of the shift until months after it started. Currently, inventory and days on market are dropping in many areas.
5. DemographicsIn 2008, the size of Gen Y (born 1977 to 1994) surpassed the size of the Baby Boom generation. Gen Y wants to own real estate. Some researchers claim that there will be a boom in the Gen Y "Mommy Market." While members of Gen X (1965-1976) are delaying both marriage and children, the typical Gen Y mom currently has 2.7 kids. This population explosion is being lead by Latina and Asian women. Gen Y is just now beginning to hit their early 30s, the time when they are most likely to buy their first home. On the other side of the coin, baby boomers (born from 1946-1964) are most likely to buy a second or a retirement home between the ages of 50 and 60. While builders have cut back substantially on the numbers of new homes being built, an increase in future demand and a limited inventory will result in higher prices.
The question is not whether there will be another real estate boom -- there will be. The real issue is how long it will be before it starts. Watch your local market's inventory levels and days on market to see what your future will hold.
Bernice Ross, national speaker and CEO of Realestatecoach.com, is the author of "Waging War on Real Estate's Discounters" and "Who's the Best Person to Sell My House?" Both are available online. She can be reached at bernice@realestatecoach.com or visit her blog at LuxuryClues.com.
***
For financing on your home purchase or refinance, please call me.
Karen Heston
http://kheston-boklo.mortgagewebcenter.com/Default.asp?bhcp=1
918-488-7353
800-947-2655 x7353
Tuesday, November 25, 2008
Fed Helps Housing
The plan should keep interest rates on loans eligible for purchase by Fannie and Freddie down, even if the demand for mortgage-backed securities weakens with the slowdown in the global economy. That, in turn, should provide support for housing markets, supporters of the plan said.
In another significant development for borrowers, Freddie Mac said it's eliminating upfront fees charged to lenders for fixed-rate purchase loans and no-cash-out refinancings for "super conforming" mortgages above the $417,000 conforming loan limit. Because Fannie and Freddie are competitors, it's common for one to follow the other's lead on fees.
The Federal Reserve today said it would buy $100 billion in debt from Fannie Mae, Freddie Mac and the Federal Home Loan Banks, and $500 billion in mortgage-backed securities backed by Fannie Mae, Freddie Mac and Ginnie Mae. The Fed also announced a separate $200 billion program to lend money to holders of asset-backed securities collateralized by debt such as student loans, auto loans and credit cards.
Since the collapse of the "private label" secondary mortgage market in August 2007, Fannie, Freddie and Ginnie Mae -- which securitizes mortgages guaranteed by the Federal Housing Administration -- have become the conduits for funding the vast majority of U.S. mortgage lending, buying or guaranteeing more than three in four single-family mortgages.
The National Association of Realtors, which has been pushing for the Treasury Department to buy up mortgage-backed securities under the $700 billion Troubled Asset Relief Program (TARP), welcomed the new Fed plan. NAR estimates that every 1 percent reduction in interest rates can generate 500,000 home sales.
"We commend the Fed decision because it will directly bring down long-term interest rates,” said Lawrence Yun, NAR chief economist. "The level of investment should be aggressive enough to bring interest rates down in a meaningful manner. As we've seen in past recessions, home sales rise when mortgage interest rates fall."
NAR will continue to push for a temporary, government-financed, interest-rate buy-down program to get rates down to 4.5 percent or less, Yun said, as part of a proposed package of stimulus measures to bolster housing markets (see story).
The Fed's purchases of mortgage-backed securities could bring down rates on 30-year fixed mortgages by 50 basis points, or half a percentage point, Yun said. A government interest rate buy-down probram would bring rates down another 200 basis points, a much greater impact that would provide "a good chance for a housing market and economic recovery," Yun said.
James Lockhart, director of Fannie and Freddie's regulator, the Federal Housing Finance Agency, said the $600 billion Fed program should be a "major boost" to mortgage and housing markets.
The additional liquidity will help reduce the large interest rate spreads between mortgages and Treasuries, resulting in lower mortgage rates over time, Lockhart said.
But the National Association of Home Builders said confusion over the extent of federal support for Fannie and Freddie's long-term debt obligations has also pushed spreads on that debt in relation to Treasury yields to record highs. That, in turn, has an impact on interest rates. The government needs to explicitly guarantee Fannie and Freddie's debt in the same way the Federal Deposit Insurance Corp. has guaranteed senior, unsecured bank debt, NAHB said.
The Fed's announcement came on the heels of other good news for borrowers -- Freddie Mac said it's eliminating or reducing delivery fees on "super conforming" mortgages of between $417,000 to $625,500 that it purchases after Jan. 2. Mortgages with note dates after Oct. 1 are eligible for the new pricing and credit requirements.
Fannie and Freddie's new chief executive officers indicated in October that such changes were in store. After the companies were placed in conservatorship in September they began reevaluating pricing of their loan guarantees with an eye to increasing liquidity to mortgage markets and a reduced emphasis on maximizing returns for investors (see story).
Freddie Mac also said this week that its retained portfolio of mortgages and mortgage-backed securities grew at an annual rate of 43.6 percent in October, to $763.7 billion -- reversing two months of negative growth. The retained portfolio peaked at $798.2 billion in July, but shrank as Freddie pared down holdings of mortgage-backed securities. Growth for the year to date was 7.1 percent at the end of October.
Call me for more information
Karen Heston
918-488-7353
Toll Free 800-947-2655 x-7353
***
In another significant development for borrowers, Freddie Mac said it's eliminating upfront fees charged to lenders for fixed-rate purchase loans and no-cash-out refinancings for "super conforming" mortgages above the $417,000 conforming loan limit. Because Fannie and Freddie are competitors, it's common for one to follow the other's lead on fees.
The Federal Reserve today said it would buy $100 billion in debt from Fannie Mae, Freddie Mac and the Federal Home Loan Banks, and $500 billion in mortgage-backed securities backed by Fannie Mae, Freddie Mac and Ginnie Mae. The Fed also announced a separate $200 billion program to lend money to holders of asset-backed securities collateralized by debt such as student loans, auto loans and credit cards.
Since the collapse of the "private label" secondary mortgage market in August 2007, Fannie, Freddie and Ginnie Mae -- which securitizes mortgages guaranteed by the Federal Housing Administration -- have become the conduits for funding the vast majority of U.S. mortgage lending, buying or guaranteeing more than three in four single-family mortgages.
The National Association of Realtors, which has been pushing for the Treasury Department to buy up mortgage-backed securities under the $700 billion Troubled Asset Relief Program (TARP), welcomed the new Fed plan. NAR estimates that every 1 percent reduction in interest rates can generate 500,000 home sales.
"We commend the Fed decision because it will directly bring down long-term interest rates,” said Lawrence Yun, NAR chief economist. "The level of investment should be aggressive enough to bring interest rates down in a meaningful manner. As we've seen in past recessions, home sales rise when mortgage interest rates fall."
NAR will continue to push for a temporary, government-financed, interest-rate buy-down program to get rates down to 4.5 percent or less, Yun said, as part of a proposed package of stimulus measures to bolster housing markets (see story).
The Fed's purchases of mortgage-backed securities could bring down rates on 30-year fixed mortgages by 50 basis points, or half a percentage point, Yun said. A government interest rate buy-down probram would bring rates down another 200 basis points, a much greater impact that would provide "a good chance for a housing market and economic recovery," Yun said.
James Lockhart, director of Fannie and Freddie's regulator, the Federal Housing Finance Agency, said the $600 billion Fed program should be a "major boost" to mortgage and housing markets.
The additional liquidity will help reduce the large interest rate spreads between mortgages and Treasuries, resulting in lower mortgage rates over time, Lockhart said.
But the National Association of Home Builders said confusion over the extent of federal support for Fannie and Freddie's long-term debt obligations has also pushed spreads on that debt in relation to Treasury yields to record highs. That, in turn, has an impact on interest rates. The government needs to explicitly guarantee Fannie and Freddie's debt in the same way the Federal Deposit Insurance Corp. has guaranteed senior, unsecured bank debt, NAHB said.
The Fed's announcement came on the heels of other good news for borrowers -- Freddie Mac said it's eliminating or reducing delivery fees on "super conforming" mortgages of between $417,000 to $625,500 that it purchases after Jan. 2. Mortgages with note dates after Oct. 1 are eligible for the new pricing and credit requirements.
Fannie and Freddie's new chief executive officers indicated in October that such changes were in store. After the companies were placed in conservatorship in September they began reevaluating pricing of their loan guarantees with an eye to increasing liquidity to mortgage markets and a reduced emphasis on maximizing returns for investors (see story).
Freddie Mac also said this week that its retained portfolio of mortgages and mortgage-backed securities grew at an annual rate of 43.6 percent in October, to $763.7 billion -- reversing two months of negative growth. The retained portfolio peaked at $798.2 billion in July, but shrank as Freddie pared down holdings of mortgage-backed securities. Growth for the year to date was 7.1 percent at the end of October.
Call me for more information
Karen Heston
918-488-7353
Toll Free 800-947-2655 x-7353
***
Tuesday, November 18, 2008
Oklahoma's 2009 FHA and Conventional Loan limits
FHA LOAN LIMITS*:
1 UNIT - $271,050
2 UNIT - $347,000
3 UNIT - $419,400
4 UNIT - $521,250
CONVENTIONAL CONFORMING LOAN LIMITS:
1 UNIT - $417,000
2 UNIT - $533,850
3 UNIT - $645,300
4 UNIT - $801,950
Give me a call so I can assist you for your next purchase or refinance
Karen L Heston
918-488-7353
800-947-2655 x-7353
1 UNIT - $271,050
2 UNIT - $347,000
3 UNIT - $419,400
4 UNIT - $521,250
CONVENTIONAL CONFORMING LOAN LIMITS:
1 UNIT - $417,000
2 UNIT - $533,850
3 UNIT - $645,300
4 UNIT - $801,950
Give me a call so I can assist you for your next purchase or refinance
Karen L Heston
918-488-7353
800-947-2655 x-7353
Thursday, October 30, 2008
What Is The Deal With Mortgage Rates?
Who Can Figure From One Day To The Next If Rates Will Be Up Or Down?
October 30, 2008
If you have been tracking mortgage rates of late, you might feel a bit tuckered out. I am now referring to the latest turmoil in the markets as "Vuja De," which is the opposite of Deja Vu, meaning "we ain't never been here before." Our rates have gone up, down, then up back up again; often it all happens during the same day. Since February 6, 2008 we have seen mortgage rates more volatile than ever in the quarter century I have been tracking them.
However, in the last few months since the credit crunch hit, the volatility has gone through the layers of our ozone. During the past couple of weeks we have seen them hit their record high point for the year, then begun a nice downward spiral, then momentarily dropped to some very nice lows for hours or a couple of days at a time, then immediateley swung back to near record highs for 2008.
What is going on with mortgage rates?
Normally, in what used to be referred to as stable market times, mortgage rates would increase and decrease based on US Treasury sales, the mortgage backed securities market (MBS), the various economic reports of the day and the constant struggle to avoid the evil lurking in the shadows known as inflation. Real inflation decreases a bond’s yield, and thus any hint of inflation is going to bring down the value of a mortgage bond, which translates to an immediate increase to mortgage rates. In good times, when the economy is slowing down or showing signs of stability, this means that the yield is safe, so more investors purchase these securities and mortgage rates go down. That is how it works in what used to be called "normal times." I have found that the term "normal times" is a very relative term, as what we have experienced of late are not what I would like to call normal.
In times past, when all economic indicators pointed to a slowing economy, and US Treasury and bond yields were down, ordinarily mortgage rates would decrease immediately. That is not the case today. Most of the economic reports released lately show that our national economy is slowing down, which used to translate to a decrease to mortgage rates. But that hasn’t been the case. Oil prices have plummeted, gold has dropped somewhat and commodity prices have also decreased during the past few months. In normal times, this should have made mortgage rates decline, but they often did not decrease as one would expect. Our national unemployment continues going up as well as foreclosures. Home values in many parts of the country are down. This really should stimulate home buying in many sectors as it will bring balance to those markets, as they were highly inflated and will make housing affordable once again to those overated areas.
Here in Tulsa we have remained stable and it seems a shame we have had to pay the price due to the rest of the nations ill beggotten gains and greed. Yesterday the consumer confidence index slipped to a record low not seen in 41 years, and mortgage rates shot up. After the FOMC reduced the fed funding fee by 1/2%, mortgage rates again increased.
We should all be happy we are in Tulsa, knowing that our home prices are still appreciating and our local economy is still creating jobs and developing new areas that will bring new employment. The mortgage rates will decrease and faith will be restored to the markets. Remember that rates were normally at 9% before October, 2000 and we didn't see loans below 7.5% often until a tragic event in 2001. These national events will all pass and everyone should remain positive and stay in the home buying and selling mode.
Have a great day and please call me for any updates on rates or the economy. Stay optimistic and keep the faith.
Sincerely,
Jeff Sargent
President
ONB Bank & Trust Co
Residential Mortgage Division
8908 S Yale, Suite 250
Tulsa, OK 74137
Office: 918;392-6572
Cell: 918.636.0630
Fax: 918.392.6550
jeff_sargent@onbbank.com
October 30, 2008
If you have been tracking mortgage rates of late, you might feel a bit tuckered out. I am now referring to the latest turmoil in the markets as "Vuja De," which is the opposite of Deja Vu, meaning "we ain't never been here before." Our rates have gone up, down, then up back up again; often it all happens during the same day. Since February 6, 2008 we have seen mortgage rates more volatile than ever in the quarter century I have been tracking them.
However, in the last few months since the credit crunch hit, the volatility has gone through the layers of our ozone. During the past couple of weeks we have seen them hit their record high point for the year, then begun a nice downward spiral, then momentarily dropped to some very nice lows for hours or a couple of days at a time, then immediateley swung back to near record highs for 2008.
What is going on with mortgage rates?
Normally, in what used to be referred to as stable market times, mortgage rates would increase and decrease based on US Treasury sales, the mortgage backed securities market (MBS), the various economic reports of the day and the constant struggle to avoid the evil lurking in the shadows known as inflation. Real inflation decreases a bond’s yield, and thus any hint of inflation is going to bring down the value of a mortgage bond, which translates to an immediate increase to mortgage rates. In good times, when the economy is slowing down or showing signs of stability, this means that the yield is safe, so more investors purchase these securities and mortgage rates go down. That is how it works in what used to be called "normal times." I have found that the term "normal times" is a very relative term, as what we have experienced of late are not what I would like to call normal.
In times past, when all economic indicators pointed to a slowing economy, and US Treasury and bond yields were down, ordinarily mortgage rates would decrease immediately. That is not the case today. Most of the economic reports released lately show that our national economy is slowing down, which used to translate to a decrease to mortgage rates. But that hasn’t been the case. Oil prices have plummeted, gold has dropped somewhat and commodity prices have also decreased during the past few months. In normal times, this should have made mortgage rates decline, but they often did not decrease as one would expect. Our national unemployment continues going up as well as foreclosures. Home values in many parts of the country are down. This really should stimulate home buying in many sectors as it will bring balance to those markets, as they were highly inflated and will make housing affordable once again to those overated areas.
Here in Tulsa we have remained stable and it seems a shame we have had to pay the price due to the rest of the nations ill beggotten gains and greed. Yesterday the consumer confidence index slipped to a record low not seen in 41 years, and mortgage rates shot up. After the FOMC reduced the fed funding fee by 1/2%, mortgage rates again increased.
We should all be happy we are in Tulsa, knowing that our home prices are still appreciating and our local economy is still creating jobs and developing new areas that will bring new employment. The mortgage rates will decrease and faith will be restored to the markets. Remember that rates were normally at 9% before October, 2000 and we didn't see loans below 7.5% often until a tragic event in 2001. These national events will all pass and everyone should remain positive and stay in the home buying and selling mode.
Have a great day and please call me for any updates on rates or the economy. Stay optimistic and keep the faith.
Sincerely,
Jeff Sargent
President
ONB Bank & Trust Co
Residential Mortgage Division
8908 S Yale, Suite 250
Tulsa, OK 74137
Office: 918;392-6572
Cell: 918.636.0630
Fax: 918.392.6550
jeff_sargent@onbbank.com
Monday, October 27, 2008
Still Money to Lend
So call me!
BOk Mortgages Show Growth
TULSA-BOK Mortgage Group and its regional partners are bucking the national trend. BOK Financial said its Mortgage Groupl is well-funded and is looking for new business in all regional markets. The national mortgage market has declined to 25 percent this year, but BOK's has grown by more than 15 percent in 2008 compared to 2007.
Call me for a new mortgage or refinancing an exsisting one.
Karen Heston
Mortgage Banker
800-947-2655 x-7353
(918)488-7353
kheston@bokf.com
BOk Mortgages Show Growth
TULSA-BOK Mortgage Group and its regional partners are bucking the national trend. BOK Financial said its Mortgage Groupl is well-funded and is looking for new business in all regional markets. The national mortgage market has declined to 25 percent this year, but BOK's has grown by more than 15 percent in 2008 compared to 2007.
Call me for a new mortgage or refinancing an exsisting one.
Karen Heston
Mortgage Banker
800-947-2655 x-7353
(918)488-7353
kheston@bokf.com
Wednesday, September 24, 2008
Do Not Let The National News Scare You-Tulsa Still Remains a Great Place To Buy & Fund a Home!!!
It Is Still A Great Time To Buy & Finance a Home In Oklahoma
Our Tulsa and Oklahoma economy remains robust, despite the headlines that play out daily on the national media. There are still many mortgage programs out there that enable people to go out and purchase a home. If you watch and read the national news, it is often frightening and creates undue stress to folks here in Oklahoma. Please remember that Tulsa was recently named one of the top 10 best places to live and work in the US. I think it came in 5th place out of the top 100 because of the affordability for homebuyers and the many other amenities that our city has to offer. Do not let the national news get you down. Back in 1983-1987 our economy was hurt by our dependence on local oil related businesses.
This year, we have been blessed by the fact that we still have so many companies that are energy related and it has helped our local economy remain stable.
There are still jobs out there to be had, homes to be bought and mortgages to help buyers achieve their dreams of home ownership.
Get in the game if you are thinking about buying a home. Contact a realtor and please feel free to call our bank for any questions that you have regarding financing your dream home.
You can reach us at 918.481.6833.
Have a great week!
Jeff Sargent
President
ONB Bank & Trust Residential Mortgage Div
8908 S Yale Ave, Suite 250
Tulsa, OK 74137
jeff_sargent@onbbank.com
Direct Line: 918.392.6572
Cell: 918.636.0630
Member FDIC
An Equal Opportunity Lender
Our Tulsa and Oklahoma economy remains robust, despite the headlines that play out daily on the national media. There are still many mortgage programs out there that enable people to go out and purchase a home. If you watch and read the national news, it is often frightening and creates undue stress to folks here in Oklahoma. Please remember that Tulsa was recently named one of the top 10 best places to live and work in the US. I think it came in 5th place out of the top 100 because of the affordability for homebuyers and the many other amenities that our city has to offer. Do not let the national news get you down. Back in 1983-1987 our economy was hurt by our dependence on local oil related businesses.
This year, we have been blessed by the fact that we still have so many companies that are energy related and it has helped our local economy remain stable.
There are still jobs out there to be had, homes to be bought and mortgages to help buyers achieve their dreams of home ownership.
Get in the game if you are thinking about buying a home. Contact a realtor and please feel free to call our bank for any questions that you have regarding financing your dream home.
You can reach us at 918.481.6833.
Have a great week!
Jeff Sargent
President
ONB Bank & Trust Residential Mortgage Div
8908 S Yale Ave, Suite 250
Tulsa, OK 74137
jeff_sargent@onbbank.com
Direct Line: 918.392.6572
Cell: 918.636.0630
Member FDIC
An Equal Opportunity Lender
Tuesday, September 16, 2008
Float or Lock?
This was just forwarded to me by Julie VanBoening at First Mortgage in Tulsa.
<http://www.agentxsites.com/> <http://www.mortgagexsites.com/>
There are only four pieces of economic news scheduled for release this week and one of them is a highly important inflation reading. We also have another Federal Open Market Committee (FOMC) meeting, which likely will not bring a change to key short-term interest rates. There is a pretty good possibility of seeing a fair amount of volatility in the markets and likely mortgage rates the next several days.
The first report of the week is August's Industrial Production data tomorrow morning. This report gives us a measurement of manufacturing sector strength by tracking output at U.S. factories, mines and utilities. It is considered to be moderately important but could cause movement in mortgage rates. Analysts are currently expecting to see a 0.3% decline in production. A higher level of output could lead to higher mortgage rates, while a weaker than expected figure should help push rates slightly lower.
August's Consumer Price Ind ex (CPI) will be released Tuesday morning at 8:30 am ET. The CPI is one of the most important reports we see each and every month. It is considered to be a key indicator of inflation at the consumer level of the economy. There are two readings in the report- the overall index and the core data reading. Current forecasts are calling for no change in the overall reading and a 0.2% rise in the core data reading. A larger increase in the core data would likely lead to higher mortgage rates Tuesday, while a smaller increase would be good news.
The FOMC meeting will adjourn at 2:15 PM Tuesday. There is little debate about a possible change to key short-term interest rates at this meeting. The overwhelming consensus is that there will be no change to rates at this meeting. However, the post-meeting statement could very well lead to volatility during afternoon trading as investors dissect it in an effort to find the Fed's expected next move. The wild card is how the ma rkets react to the statement. If we see significant weakness in stocks, the bond market may benefit as a safe-haven from the volatility. This could lead to lower mortgage rates Tuesday afternoon and Wednesday morning.
August's Housing Starts report will be released early Wednesday morning. This report will probably not have much of an impact on the bond market or mortgage rates. It gives us a measurement of housing sector strength and mortgage credit demand, but is usually considered to be of low importance to the financial markets.
Late Thursday morning, the Conference Board will release its Leading Economic Indicators (LEI). This index attempts to measure economic activity over the next three to six months. If it estimates an increase in activity, the bond market will probably fall and mortgage rates will rise slightly. If it shows weaker than expected readings, the bond market may rally and mortgage rates should fall. Current forecasts are calling for a 0.2% decline from July's reading.
Overall, I expect to see some pressure in bonds tomorrow as investors prepare for Tuesday's events. Tuesday will most likely be the most important day of the week with the CPI release and the FOMC meeting. If the CPI eases inflation concerns and the Fed statement doesn't reveal any negative surprises, we will most likely see mortgage rates move lower for the week.
If I were considering financing/refinancing a home, I would.... Lock if my closing was taking place within 7 days... Lock if my closing was taking place between 8 and 20 days... Float if my closing was taking place between 21 and 60 days... Float if my closing was taking place over 60 days from now... This is only my opinion of what I would do if I were financing a home. It is only an opinion and cannot be guaranteed to be in the best interest of all/any other borrowers.
Julie Van Boening
Professional Mortgage Planner
824 N Sycamore
Broken Arrow, OK 74012
(918) 251-9297 Office
Monday, September 8, 2008
Great News for Oklahoma
By Richard Mize
Real Estate Editor
Oklahoma is No. 1 in home value gains — at a time when homeowners in most of the rest of the country are wondering what hit them in their equity.
The Sooner State led the nation in appreciation, first among the 50 states, for the period ending June 30, the federal government said Tuesday.
With values in a historic general national decline in most of the country — and in a freefall in some places — values in Oklahoma rose 4.9 percent in the second quarter compared with the second quarter of 2007, according to the Office of Federal Housing Enterprise Oversight Home Price Index.
Nationally, values fell 1.7 percent during the same period. The U.S. purchase-only index tumbled 4.8 percent over the year, the agency reported.
Game on"Oklahoma is No. 1! Whew, am I glad football season is back. But wait, that is our housing market," quipped Mike Means, executive vice president of the Oklahoma State Home Builders Association. "Why? Two strong markets — Oklahoma City and Tulsa."
In fact, Tulsa ranked 10th among metro areas, with an increase of 4.87 percent. Oklahoma City ranked 17th with an increase of 4.68 percent.
Quarter to quarter, Tulsa values increased 0.91 percent and Oklahoma City values increased 1.87 percent, the federal agency reported.
"To me it affirms what we have been saying all along. We did not have the overheated market and did not have the investor-speculative market. Slow and steady was our pace and still is. Bottom line, our prices are still increasing, so if you don't buy now, the price is going up. Good news for Oklahoma, I say," Means said.
Repeat playThe federal agency's main index tracks all transactions, purchases as well as refinances. The new numbers echoed second-quarter statistics from the National Association of Realtors.
The Realtors reported that Oklahoma City and Tulsa were among 35 metro areas that showed gains in median home prices in the second quarter.
Oklahoma City's median price of $131,000 was 1.3 percent higher than the $129,300 recorded in the second quarter of 2007 and 4.8 percent higher than the $124,900 recorded in the first quarter, the Realtors said.
Tulsa's median price of $132,000 was 2.3 percent higher than the $129,000 recorded in the second quarter of 2007 and 8 percent higher than the $122,200 median price in the first quarter, the group said.
Gains on the ground"Oklahoma is very fortunate. This is the eighth straight year we are seeing steady increases in home appreciation," said Sam Rader, chairman of the board of Tulsa-based Coldwell Banker Select, which has 20 offices and 700 agents across the state.
"Here in Tulsa, and throughout the state, we have not experienced the sharp increases or decreases in home values that have occurred elsewhere. On the contrary, we have continued to see slight but steady growth during these uncertain times for other markets," Rader said. "This dynamic is fueled by the fact that our market is made up of solid demand from of home owners rather than from real estate speculators."
A strong defenseLawton home builder Steve Barnes, a former president of the state builders association, said the housing market also is benefiting from Oklahoma's strong economy, which is also generally out of step with the nation.
"It is simple. I am on a bank advisory board and see across the board what the different business sectors are doing," Barnes said. "Ag business is stable to very good with the crop prices, even with the fuel costs. Oklahoma being an oil- and natural gas-producing state, this (too) has a strong positive impact. Fort Sill, Altus Air Force Base, Tinker Air Force Base, Vance Air Force Base and the other defense industry businesses are huge impacts on Oklahoma.
"Many states are going backwards but Oklahoma has these three (sectors) pushing our economy where most do not."
X's & O'sThe inner workings of the housing sector itself in Oklahoma also sidestepped some of the factors that are causing other markets to fall, said Victoria Caldwell, a RE/MAX franchise broker-owner in Edmond and vice president of MLSOK.com, the metro Realtors' multiple listing service.
"We didn't have the unfounded appreciation that some of the areas hardest hit had. We also didn't have a mortgage market that was completely dependant upon nonconforming loans. The largest percentage of our properties can be purchased using conforming conventional and Federal Housing Administration-backed loans," Caldwell said.
Barnes said most Oklahoma home buyers "qualified for the loans they received."
If you want to apply for a mortgage please contact
Karen L Heston, Mortgage Banker
BOk Mortgage (918)488-7353
Real Estate Editor
Oklahoma is No. 1 in home value gains — at a time when homeowners in most of the rest of the country are wondering what hit them in their equity.
The Sooner State led the nation in appreciation, first among the 50 states, for the period ending June 30, the federal government said Tuesday.
With values in a historic general national decline in most of the country — and in a freefall in some places — values in Oklahoma rose 4.9 percent in the second quarter compared with the second quarter of 2007, according to the Office of Federal Housing Enterprise Oversight Home Price Index.
Nationally, values fell 1.7 percent during the same period. The U.S. purchase-only index tumbled 4.8 percent over the year, the agency reported.
Game on"Oklahoma is No. 1! Whew, am I glad football season is back. But wait, that is our housing market," quipped Mike Means, executive vice president of the Oklahoma State Home Builders Association. "Why? Two strong markets — Oklahoma City and Tulsa."
In fact, Tulsa ranked 10th among metro areas, with an increase of 4.87 percent. Oklahoma City ranked 17th with an increase of 4.68 percent.
Quarter to quarter, Tulsa values increased 0.91 percent and Oklahoma City values increased 1.87 percent, the federal agency reported.
"To me it affirms what we have been saying all along. We did not have the overheated market and did not have the investor-speculative market. Slow and steady was our pace and still is. Bottom line, our prices are still increasing, so if you don't buy now, the price is going up. Good news for Oklahoma, I say," Means said.
Repeat playThe federal agency's main index tracks all transactions, purchases as well as refinances. The new numbers echoed second-quarter statistics from the National Association of Realtors.
The Realtors reported that Oklahoma City and Tulsa were among 35 metro areas that showed gains in median home prices in the second quarter.
Oklahoma City's median price of $131,000 was 1.3 percent higher than the $129,300 recorded in the second quarter of 2007 and 4.8 percent higher than the $124,900 recorded in the first quarter, the Realtors said.
Tulsa's median price of $132,000 was 2.3 percent higher than the $129,000 recorded in the second quarter of 2007 and 8 percent higher than the $122,200 median price in the first quarter, the group said.
Gains on the ground"Oklahoma is very fortunate. This is the eighth straight year we are seeing steady increases in home appreciation," said Sam Rader, chairman of the board of Tulsa-based Coldwell Banker Select, which has 20 offices and 700 agents across the state.
"Here in Tulsa, and throughout the state, we have not experienced the sharp increases or decreases in home values that have occurred elsewhere. On the contrary, we have continued to see slight but steady growth during these uncertain times for other markets," Rader said. "This dynamic is fueled by the fact that our market is made up of solid demand from of home owners rather than from real estate speculators."
A strong defenseLawton home builder Steve Barnes, a former president of the state builders association, said the housing market also is benefiting from Oklahoma's strong economy, which is also generally out of step with the nation.
"It is simple. I am on a bank advisory board and see across the board what the different business sectors are doing," Barnes said. "Ag business is stable to very good with the crop prices, even with the fuel costs. Oklahoma being an oil- and natural gas-producing state, this (too) has a strong positive impact. Fort Sill, Altus Air Force Base, Tinker Air Force Base, Vance Air Force Base and the other defense industry businesses are huge impacts on Oklahoma.
"Many states are going backwards but Oklahoma has these three (sectors) pushing our economy where most do not."
X's & O'sThe inner workings of the housing sector itself in Oklahoma also sidestepped some of the factors that are causing other markets to fall, said Victoria Caldwell, a RE/MAX franchise broker-owner in Edmond and vice president of MLSOK.com, the metro Realtors' multiple listing service.
"We didn't have the unfounded appreciation that some of the areas hardest hit had. We also didn't have a mortgage market that was completely dependant upon nonconforming loans. The largest percentage of our properties can be purchased using conforming conventional and Federal Housing Administration-backed loans," Caldwell said.
Barnes said most Oklahoma home buyers "qualified for the loans they received."
If you want to apply for a mortgage please contact
Karen L Heston, Mortgage Banker
BOk Mortgage (918)488-7353
Thursday, August 28, 2008
More Bond Money
OHFA has announced a new bond allotment set for September 23, 2008. There will be $40,000,000 for the state of Oklahoma. The rate has not been set but it projected to be around 7%.
The funds are available for down payment assistance not to exceed 3% and are available to first-time home buyers. The definition of first-time home buyers is someone who has not owned a home in the last three years. A displaced spouse as a result of a divorce is also allowed.
Bond money is allowed for anyone who purchases a home in a "target" area.
The funds are on a first-come, first-served basis.
For more information please call me.
Karen Heston - kheston@bokf.com
BOk Mortgage 918-488-7353
800-947-2655 x-7353
The funds are available for down payment assistance not to exceed 3% and are available to first-time home buyers. The definition of first-time home buyers is someone who has not owned a home in the last three years. A displaced spouse as a result of a divorce is also allowed.
Bond money is allowed for anyone who purchases a home in a "target" area.
The funds are on a first-come, first-served basis.
For more information please call me.
Karen Heston - kheston@bokf.com
BOk Mortgage 918-488-7353
800-947-2655 x-7353
Thursday, August 21, 2008
First-Time Homebuyers Tax Credit for Down-Payment By NAHB
Strategic Home Buyers Can Use Tax Credit for a Down-payment
First-time home buyers can accelerate the receipt of the $7,500 from their tax credit and even apply it toward a down-payment.
National Association of Homebuilder's (NAHB’s) Web site explaining the tax credit — www.federalhousingtaxcredit.com — has been inundated by home builders and prospective buyers seeking information on the new benefit.
One of the most commonly asked questions since the credit was enacted concerns how it can be used for a down-payment, and new questions and answers related to this issue recently have been added to the Web site. (See questions 19 to 21.)
First-time home buyers (defined as those who have not owned a principal residence for three years) should be aware of several mechanisms that can narrow or close the gap between the time they purchase their home and the time they take the deduction on their income tax return.
NAHB successfully pushed for a rule that allows qualified home buyers making a home purchase in 2009 before the July 1 cut-off date to claim the $7,500 credit on their 2008 tax return — in effect, one year early. Also, home buyers who purchase a home after filing their 2008 tax return with the IRS in 2009, may file an amended tax return that includes the credit.
As a result, the qualifying home buyer can significantly reduce the time it takes to receive the cash benefit of the tax credit.
More fundamentally, strategic home buyers have a more effective option in their hands. Prospective home buyers, who are certain they qualify for the credit based on the income limits and the first-time buyer test, can adjust their income tax withholding today through their employer.
IRS Form W-4, which is typically submitted by most workers when beginning a new job, allows taxpayers to adjust the amount of automatic income tax withholding in anticipation of certain tax credits. The form states, “You can take projected tax credits into account in figuring your allowable number of withholding allowances.”
Home buyers who expect to claim the tax credit can reduce their withholding, thereby increasing their take-home pay (net of income tax) and allowing them to begin to claim the expected tax credit for use as a down-payment.
This is done by adding the expected credit amount to line 5 or reducing line 6 (additional withholding) of the Deductions and Adjustments Worksheet on the W-4 and recalculating their income tax withholding. Similar adjustments can be done by home buyers making quarterly estimated tax payments.
Home buyers must be careful to understand the rules for both withholding and the tax credit before submitting a revised W-4 form to their employer. In particular, buyers should consult IRS Publication 919, or check with a tax practitioner, to determine how much to adjust their withholding.
The 2008 version of the IRS publication allows taxpayers to enter the anticipated credit amount on line 9 of worksheet 8, with “other credits.” Buyers must be careful not to reduce their withholding by more than the amount of their expected tax credit, or tax penalties may apply when they file their income tax return. This helpful information was provided courtesy of the NAHB in an effort to assist first-time homebuyers with their purchase.
Thank you,
Jeff Sargent
Jeff Sargent
Residential Mortgage Division-President
ONB Bank & Trust Co
8908 S Yale Ave, Suite 250
Tulsa, OK 74137
Office: 918.392.6572
Cell: 918.636.0630
Fax: 918.392.6550
jeff_sargent@onbbank.com
Member FDIC
First-time home buyers can accelerate the receipt of the $7,500 from their tax credit and even apply it toward a down-payment.
National Association of Homebuilder's (NAHB’s) Web site explaining the tax credit — www.federalhousingtaxcredit.com — has been inundated by home builders and prospective buyers seeking information on the new benefit.
One of the most commonly asked questions since the credit was enacted concerns how it can be used for a down-payment, and new questions and answers related to this issue recently have been added to the Web site. (See questions 19 to 21.)
First-time home buyers (defined as those who have not owned a principal residence for three years) should be aware of several mechanisms that can narrow or close the gap between the time they purchase their home and the time they take the deduction on their income tax return.
NAHB successfully pushed for a rule that allows qualified home buyers making a home purchase in 2009 before the July 1 cut-off date to claim the $7,500 credit on their 2008 tax return — in effect, one year early. Also, home buyers who purchase a home after filing their 2008 tax return with the IRS in 2009, may file an amended tax return that includes the credit.
As a result, the qualifying home buyer can significantly reduce the time it takes to receive the cash benefit of the tax credit.
More fundamentally, strategic home buyers have a more effective option in their hands. Prospective home buyers, who are certain they qualify for the credit based on the income limits and the first-time buyer test, can adjust their income tax withholding today through their employer.
IRS Form W-4, which is typically submitted by most workers when beginning a new job, allows taxpayers to adjust the amount of automatic income tax withholding in anticipation of certain tax credits. The form states, “You can take projected tax credits into account in figuring your allowable number of withholding allowances.”
Home buyers who expect to claim the tax credit can reduce their withholding, thereby increasing their take-home pay (net of income tax) and allowing them to begin to claim the expected tax credit for use as a down-payment.
This is done by adding the expected credit amount to line 5 or reducing line 6 (additional withholding) of the Deductions and Adjustments Worksheet on the W-4 and recalculating their income tax withholding. Similar adjustments can be done by home buyers making quarterly estimated tax payments.
Home buyers must be careful to understand the rules for both withholding and the tax credit before submitting a revised W-4 form to their employer. In particular, buyers should consult IRS Publication 919, or check with a tax practitioner, to determine how much to adjust their withholding.
The 2008 version of the IRS publication allows taxpayers to enter the anticipated credit amount on line 9 of worksheet 8, with “other credits.” Buyers must be careful not to reduce their withholding by more than the amount of their expected tax credit, or tax penalties may apply when they file their income tax return. This helpful information was provided courtesy of the NAHB in an effort to assist first-time homebuyers with their purchase.
Thank you,
Jeff Sargent
Jeff Sargent
Residential Mortgage Division-President
ONB Bank & Trust Co
8908 S Yale Ave, Suite 250
Tulsa, OK 74137
Office: 918.392.6572
Cell: 918.636.0630
Fax: 918.392.6550
jeff_sargent@onbbank.com
Member FDIC
Tuesday, August 5, 2008
Freddie Mac Announces Workout Incentives
Freddie Mac Announces Workout Incentives
Last week, the Federal Home Loan Mortgage Corporation, known more commonly as Freddie Mac, announced that it would double the amount of money it pays for each workout that keeps a delinquent borrower with a Freddie Mac-owned mortgage out of foreclosure. Freddie also announced it will start reimbursing servicers for the cost of door-to-door outreach programs, give servicers more time to negotiate workouts in states with fast foreclosure processes and make administrative changes intended to streamline the workout process.
"We are taking these steps because we want to reinforce the tremendous importance of workouts and reward their use," said Freddie Mac Vice President of Servicing and Asset Management Ingrid Beckles. "Giving our servicers more time and greater compensation to help troubled borrowers is fundamental to preserving homeownership and maximizing our efforts to minimize foreclosures."
According to Beckles, starting Aug. 1, 2008, compensation for repayment plans will rise from $250 to $500 while loan modification compensation will increase from $400 to $800. These changes took effect Aug. 1.
For short sales or pre-foreclosure sales, where Freddie Mac agrees to accept less than the full amount owed on a borrower's loan, compensation will go from $1,100 to $2,200 (also effective August 1. The higher amount recognizes the greater servicer staff time involved when negotiating property sales.)
Freddie Mac also said it will now reimburse the cost of leaving a door hanger up to $15 per mortgage and up to $50 per mortgage for a door knocking that results in the borrower contacting their servicer. Freddie Mac will also reimburse servicers up to $200 for additional fees paid to vendors for door knocking that results in successful alternatives to foreclosure. This policy is effective from Aug. 1, 2008, through March 31, 2009.
Freddie Mac also announced it is extending the time for foreclosures so servicers will have more time, if needed, to negotiate workouts with delinquent borrowers in Washington, DC, and 20 states with relatively fast foreclosure processes. Oklahoma is not among those states.
Freddie Mac's 0.86 percent single-family delinquency rate is a fraction of the most recent national single-family delinquency rate (6.35 percent) calculated by the Mortgage Bankers Association of America.
Thank you,
Jeff Sargent
Jeff Sargent
Residential Mortgage Division-President
ONB Bank & Trust Co
8908 S Yale Ave, Suite 250
Tulsa, OK 74137
Office: 918.392.6572
Cell: 918.636.0630
Fax: 918.392.6550
jeff_sargent@onbbank.com
Last week, the Federal Home Loan Mortgage Corporation, known more commonly as Freddie Mac, announced that it would double the amount of money it pays for each workout that keeps a delinquent borrower with a Freddie Mac-owned mortgage out of foreclosure. Freddie also announced it will start reimbursing servicers for the cost of door-to-door outreach programs, give servicers more time to negotiate workouts in states with fast foreclosure processes and make administrative changes intended to streamline the workout process.
"We are taking these steps because we want to reinforce the tremendous importance of workouts and reward their use," said Freddie Mac Vice President of Servicing and Asset Management Ingrid Beckles. "Giving our servicers more time and greater compensation to help troubled borrowers is fundamental to preserving homeownership and maximizing our efforts to minimize foreclosures."
According to Beckles, starting Aug. 1, 2008, compensation for repayment plans will rise from $250 to $500 while loan modification compensation will increase from $400 to $800. These changes took effect Aug. 1.
For short sales or pre-foreclosure sales, where Freddie Mac agrees to accept less than the full amount owed on a borrower's loan, compensation will go from $1,100 to $2,200 (also effective August 1. The higher amount recognizes the greater servicer staff time involved when negotiating property sales.)
Freddie Mac also said it will now reimburse the cost of leaving a door hanger up to $15 per mortgage and up to $50 per mortgage for a door knocking that results in the borrower contacting their servicer. Freddie Mac will also reimburse servicers up to $200 for additional fees paid to vendors for door knocking that results in successful alternatives to foreclosure. This policy is effective from Aug. 1, 2008, through March 31, 2009.
Freddie Mac also announced it is extending the time for foreclosures so servicers will have more time, if needed, to negotiate workouts with delinquent borrowers in Washington, DC, and 20 states with relatively fast foreclosure processes. Oklahoma is not among those states.
Freddie Mac's 0.86 percent single-family delinquency rate is a fraction of the most recent national single-family delinquency rate (6.35 percent) calculated by the Mortgage Bankers Association of America.
Thank you,
Jeff Sargent
Jeff Sargent
Residential Mortgage Division-President
ONB Bank & Trust Co
8908 S Yale Ave, Suite 250
Tulsa, OK 74137
Office: 918.392.6572
Cell: 918.636.0630
Fax: 918.392.6550
jeff_sargent@onbbank.com
Wednesday, July 9, 2008
Q & A for VA Home Loan & Eligibility Questions
V.A. Eligibility - Frequently Asked Questions-US Dept of Veterans Affairs
Questions about who is eligible for a VA loan and reuse of eligibility for another VA loan.
Q: How do I apply for a VA guaranteed loan?
A: You can apply for a VA loan with any mortgage lender that participates in the VA home loan program. At some point, you will need to get a Certificate of Eligibility from VA to prove to the lender that you are eligible for a VA loan.
Q: How do I get a Certificate of Eligibility?
A: Contact a V.A. approved lender, such as ONB Bank & Trust Co - Residential Mtge Division or contact the V.A.
Q: Can my lender get my Certificate of Eligibility for me?
A: Yes, it's called ACE (automated certificate of eligibility). Most lenders have access to the ACE (automated certificate of eligibility) system. This Internet based application can establish eligibility and issue an online Certificate of Eligibility in a matter of seconds. Not all cases can be processed through ACE - only those for which VA has sufficient data in our records. However, veterans are encouraged to ask their lenders about this method of obtaining a certificate.
Q: What is acceptable proof of military service?
A: If you are still serving on regular active duty, you must include an original statement of service signed by, or by direction of, the adjutant, personnel officer, or commander of your unit or higher headquarters which identifies you and your social security number, and provides your date of entry on your current active duty period and the duration of any time lost.If you were discharged from regular active duty after January 1, 1950, a copy of DD Form 214, Certificate of Release or Discharge From Active Duty should be included with your VA Form 26-1880.
If you were discharged after October 1, 1979, DD Form 214 copy 4 should be included.
A PHOTOCOPY OF DD214 WILL SUFFICE.....DO NOT SUBMIT AN ORIGINAL DOCUMENT. If you are still serving on regular active duty, you must include an original statement of service signed by, or by direction of, the adjutant, personnel officer, or commander of your unit or higher headquarters which shows your date of entry on your current active duty period and the duration of any time lost. If you were discharged from the Selected Reserves or the National Guard, you must include copies of adequate documentation of at least 6 years of honorable service. If you were discharged from the Army or Air Force National Guard, you may submit NGB Form 22, Report of Separation and Record of Service, or NGB Form 23, Retirement Points Accounting, or it’s equivalent. If you were discharged from the Selected Reserve, you may submit a copy of your latest annual points statement and evidence of honorable service. Unfortunately, there is no single form used by the Reserves or National Guard similar to the DD Form 214. It is your responsibility to furnish adequate documentation of at least 6 years of honorable service. If you are still serving in the Selected Reserves or the National Guard, you must include an original statement of service signed by, or by the direction of, the adjutant, personnel officer, or commander of your unit or higher headquarters showing the length of time that you have been a member of the Selected Reserves. Again, at least 6 years of honorable service must be documented.
Q: How can I obtain proof of military service?
A: Standard Form 180, Request Pertaining to Military Records, is used to apply for proof of military service regardless of whether you served on regular active duty or in the selected reserves. This request form is NOT processed by VA. However, Standard Form 180 is completed and mailed to the appropriate custodian of military service records. Instructions are provided on the reverse of the form to assist in determining the correct forwarding address.
Q: I have already obtained one VA loan. Can I get another one?
A: Yes, your eligibility is reusable depending on the circumstances. Normally, if you have paid off your prior VA loan and disposed of the property, you can have your used eligibility restored for additional use. Also, on a one-time only basis, you may have your eligibility restored if your prior VA loan has been paid in full but you still own the property. In either case, to obtain restoration of eligibility, the veteran must send VA a completed VA Form 26-1880 to the V.A.
Winston-Salem Eligibility Center. To prevent delays in processing, it is also advisable to include evidence that the prior loan has been paid in full and, if applicable, the property disposed of. This evidence can be in the form of a paid-in-full statement from the former lender, or a copy of the HUD-1 settlement statement completed in connection with a sale of the property or refinance of the prior loan.
Q: I sold the property I obtained with my prior VA loan on an assumption. Can I get my eligibility restored to use for a new loan?
A: In this case the veteran’s eligibility can be restored only if the qualified assumer is also an eligible veteran who is willing to substitute his or her available eligibility for that of the original veteran. Otherwise, the original veteran cannot have eligibility restored until the assumer has paid off the VA loan.
Q: My prior loan was foreclosed on, or I gave a deed in lieu of foreclosure, or the VA paid a compromise (partial) claim. Although I was released from liability on the loan and/or the debt was waived, I am told that I cannot have my used eligibility restored. Why?
A: In either case, although the veteran’s debt was waived by VA, the Government still suffered a loss on the loan. The law does not permit the used portion of the veteran’s eligibility to be restored until the loss has been repaid in full.
Q: Only a portion of my eligibility is available at this time because my prior loan has not been paid in full even though I don’t own the property anymore. Can I still obtain a VA guaranteed home loan?
A: Yes, depending on the circumstances. If a veteran has already used a portion of his or her eligibility and the used portion cannot yet be restored, any partial remaining eligibility would be available for use. The veteran would have to discuss with a lender whether the remaining balance would be sufficient for the loan amount sought and whether any down payment would be required.
Q: Is the surviving spouse of a deceased veteran eligible for the home loan benefit?
A: The unmarried surviving spouse of a veteran who died on active duty or as the result of a service-connected disability is eligible for the home loan benefit. In addition, a surviving spouse who obtained a VA home loan with the veteran prior to his or her death (regardless of the cause of death), may obtain a VA guaranteed interest rate reduction refinance loan.
Also, a surviving spouse who remarries on or after attaining age 57, and on or after December 16, 2003, may be eligible for the home loan benefit. However, a surviving spouse who remarried before December 16, 2003, and on or after attaining age 57, must have applied no later than December 15, 2004, to have established home loan eligibility. VA will deny applications from surviving spouses who remarried before December 16, 2003 if received after December 15, 2004.
Q: Are the children of a living or deceased veteran eligible for the home loan benefit?
A: No, the children of an eligible veteran are not eligible for the home loan benefit.
This information provided by the US Dept of Veterans Affairs should assist with any questions that veterans or survivors of our country's heroes may have.
If you are a veteran and have not owned a home in the past 3 full tax years, please contact our office to discuss receiving bond assistance that could get you into a home with very limited funds.
If you need information regarding any VA benefits click on: https://iris.va.gov/scripts/iris.cfg/php.exe/enduser/home.php
Thank you and have a great day.
Jeff Sargent
President-ONB Bank & Trust/Residential Mortgage Division
918.481.6833 Member, FDIC
Questions about who is eligible for a VA loan and reuse of eligibility for another VA loan.
Q: How do I apply for a VA guaranteed loan?
A: You can apply for a VA loan with any mortgage lender that participates in the VA home loan program. At some point, you will need to get a Certificate of Eligibility from VA to prove to the lender that you are eligible for a VA loan.
Q: How do I get a Certificate of Eligibility?
A: Contact a V.A. approved lender, such as ONB Bank & Trust Co - Residential Mtge Division or contact the V.A.
Q: Can my lender get my Certificate of Eligibility for me?
A: Yes, it's called ACE (automated certificate of eligibility). Most lenders have access to the ACE (automated certificate of eligibility) system. This Internet based application can establish eligibility and issue an online Certificate of Eligibility in a matter of seconds. Not all cases can be processed through ACE - only those for which VA has sufficient data in our records. However, veterans are encouraged to ask their lenders about this method of obtaining a certificate.
Q: What is acceptable proof of military service?
A: If you are still serving on regular active duty, you must include an original statement of service signed by, or by direction of, the adjutant, personnel officer, or commander of your unit or higher headquarters which identifies you and your social security number, and provides your date of entry on your current active duty period and the duration of any time lost.If you were discharged from regular active duty after January 1, 1950, a copy of DD Form 214, Certificate of Release or Discharge From Active Duty should be included with your VA Form 26-1880.
If you were discharged after October 1, 1979, DD Form 214 copy 4 should be included.
A PHOTOCOPY OF DD214 WILL SUFFICE.....DO NOT SUBMIT AN ORIGINAL DOCUMENT. If you are still serving on regular active duty, you must include an original statement of service signed by, or by direction of, the adjutant, personnel officer, or commander of your unit or higher headquarters which shows your date of entry on your current active duty period and the duration of any time lost. If you were discharged from the Selected Reserves or the National Guard, you must include copies of adequate documentation of at least 6 years of honorable service. If you were discharged from the Army or Air Force National Guard, you may submit NGB Form 22, Report of Separation and Record of Service, or NGB Form 23, Retirement Points Accounting, or it’s equivalent. If you were discharged from the Selected Reserve, you may submit a copy of your latest annual points statement and evidence of honorable service. Unfortunately, there is no single form used by the Reserves or National Guard similar to the DD Form 214. It is your responsibility to furnish adequate documentation of at least 6 years of honorable service. If you are still serving in the Selected Reserves or the National Guard, you must include an original statement of service signed by, or by the direction of, the adjutant, personnel officer, or commander of your unit or higher headquarters showing the length of time that you have been a member of the Selected Reserves. Again, at least 6 years of honorable service must be documented.
Q: How can I obtain proof of military service?
A: Standard Form 180, Request Pertaining to Military Records, is used to apply for proof of military service regardless of whether you served on regular active duty or in the selected reserves. This request form is NOT processed by VA. However, Standard Form 180 is completed and mailed to the appropriate custodian of military service records. Instructions are provided on the reverse of the form to assist in determining the correct forwarding address.
Q: I have already obtained one VA loan. Can I get another one?
A: Yes, your eligibility is reusable depending on the circumstances. Normally, if you have paid off your prior VA loan and disposed of the property, you can have your used eligibility restored for additional use. Also, on a one-time only basis, you may have your eligibility restored if your prior VA loan has been paid in full but you still own the property. In either case, to obtain restoration of eligibility, the veteran must send VA a completed VA Form 26-1880 to the V.A.
Winston-Salem Eligibility Center. To prevent delays in processing, it is also advisable to include evidence that the prior loan has been paid in full and, if applicable, the property disposed of. This evidence can be in the form of a paid-in-full statement from the former lender, or a copy of the HUD-1 settlement statement completed in connection with a sale of the property or refinance of the prior loan.
Q: I sold the property I obtained with my prior VA loan on an assumption. Can I get my eligibility restored to use for a new loan?
A: In this case the veteran’s eligibility can be restored only if the qualified assumer is also an eligible veteran who is willing to substitute his or her available eligibility for that of the original veteran. Otherwise, the original veteran cannot have eligibility restored until the assumer has paid off the VA loan.
Q: My prior loan was foreclosed on, or I gave a deed in lieu of foreclosure, or the VA paid a compromise (partial) claim. Although I was released from liability on the loan and/or the debt was waived, I am told that I cannot have my used eligibility restored. Why?
A: In either case, although the veteran’s debt was waived by VA, the Government still suffered a loss on the loan. The law does not permit the used portion of the veteran’s eligibility to be restored until the loss has been repaid in full.
Q: Only a portion of my eligibility is available at this time because my prior loan has not been paid in full even though I don’t own the property anymore. Can I still obtain a VA guaranteed home loan?
A: Yes, depending on the circumstances. If a veteran has already used a portion of his or her eligibility and the used portion cannot yet be restored, any partial remaining eligibility would be available for use. The veteran would have to discuss with a lender whether the remaining balance would be sufficient for the loan amount sought and whether any down payment would be required.
Q: Is the surviving spouse of a deceased veteran eligible for the home loan benefit?
A: The unmarried surviving spouse of a veteran who died on active duty or as the result of a service-connected disability is eligible for the home loan benefit. In addition, a surviving spouse who obtained a VA home loan with the veteran prior to his or her death (regardless of the cause of death), may obtain a VA guaranteed interest rate reduction refinance loan.
Also, a surviving spouse who remarries on or after attaining age 57, and on or after December 16, 2003, may be eligible for the home loan benefit. However, a surviving spouse who remarried before December 16, 2003, and on or after attaining age 57, must have applied no later than December 15, 2004, to have established home loan eligibility. VA will deny applications from surviving spouses who remarried before December 16, 2003 if received after December 15, 2004.
Q: Are the children of a living or deceased veteran eligible for the home loan benefit?
A: No, the children of an eligible veteran are not eligible for the home loan benefit.
This information provided by the US Dept of Veterans Affairs should assist with any questions that veterans or survivors of our country's heroes may have.
If you are a veteran and have not owned a home in the past 3 full tax years, please contact our office to discuss receiving bond assistance that could get you into a home with very limited funds.
If you need information regarding any VA benefits click on: https://iris.va.gov/scripts/iris.cfg/php.exe/enduser/home.php
Thank you and have a great day.
Jeff Sargent
President-ONB Bank & Trust/Residential Mortgage Division
918.481.6833 Member, FDIC
Thursday, June 26, 2008
great JUMBO rates
We have a JUMBO (loan amounts over $417,000) rate at 6.49% / 6.154% APR!
Call me for Details!
Karen L. Heston
Mortgage Banker
BOk Mortgage
p-(918)488-7353
f- (918)280-3390
Online application - click here
Virtual Business Card - Karen Heston
Call me for Details!
Karen L. Heston
Mortgage Banker
BOk Mortgage
p-(918)488-7353
f- (918)280-3390
Online application - click here
Virtual Business Card - Karen Heston
Thursday, June 12, 2008
Back in the Headlines -Seller Funded Down Payments
HUD again seeks end to seller-funded loans
Real estate roundup
By Inman News, Tuesday, June 10, 2008.
The following is a real estate news roundup:
HUD still trying to end seller-funded loans
The Bush administration is again moving forward with a proposal to ban seller-funded down-payment assistance for FHA-backed loans, reopening the public comment period on the plan for 60 days. The Department of Housing and Urban Development was forced to reopen an administrative proceeding on the rule change after a judge ruled it did not adequately explain its reasons for reversing past policy on seller-funded loans -- a practice it defended as recently as 2005 (see Inman News story).
Now HUD argues that the loans artificially inflate home prices and are three times more likely to end up in foreclosure. In a speech Monday to the National Press Club, Assistant Secretary for -Housing Brian Montgomery said that HUD had $4.6 billion in unanticipated losses -- mostly due to increased seller-funded loans -- and could require taxpayer assistance to continue operating for the first time in its 74-year history if it is not permitted to take action to mitigate its losses. No private mortgage insurance companies back such loans, Montgomery said, which now account for one-third of FHA's guarantee portfolio.
Nehemiah Corp. of America, one of three nonprofits that sued HUD in order to continue their seller-funded down-payment assistance programs, issued a statement saying the loans have been "enormously successful" in helping low- to middle-income families become homeowners, and calling HUD's decision to move forward with a ban "astonishing."
If I can assist you on any of your mortgage needs, please call me at
Karen L Heston
BOk Mortgage
918-488-7353
Real estate roundup
By Inman News, Tuesday, June 10, 2008.
The following is a real estate news roundup:
HUD still trying to end seller-funded loans
The Bush administration is again moving forward with a proposal to ban seller-funded down-payment assistance for FHA-backed loans, reopening the public comment period on the plan for 60 days. The Department of Housing and Urban Development was forced to reopen an administrative proceeding on the rule change after a judge ruled it did not adequately explain its reasons for reversing past policy on seller-funded loans -- a practice it defended as recently as 2005 (see Inman News story).
Now HUD argues that the loans artificially inflate home prices and are three times more likely to end up in foreclosure. In a speech Monday to the National Press Club, Assistant Secretary for -Housing Brian Montgomery said that HUD had $4.6 billion in unanticipated losses -- mostly due to increased seller-funded loans -- and could require taxpayer assistance to continue operating for the first time in its 74-year history if it is not permitted to take action to mitigate its losses. No private mortgage insurance companies back such loans, Montgomery said, which now account for one-third of FHA's guarantee portfolio.
Nehemiah Corp. of America, one of three nonprofits that sued HUD in order to continue their seller-funded down-payment assistance programs, issued a statement saying the loans have been "enormously successful" in helping low- to middle-income families become homeowners, and calling HUD's decision to move forward with a ban "astonishing."
If I can assist you on any of your mortgage needs, please call me at
Karen L Heston
BOk Mortgage
918-488-7353
Friday, June 6, 2008
1st Quarter Mortgage Delinquencies Hit Highest Level Since 1979
1st Quarter Mortgage Delinquencies Hit Highest Level Since 1979
The delinquency rate for mortgage loans on one- to four-unit residential properties stood at 6.35% of all loans outstanding at the end of the first quarter of 2008 on a seasonally adjusted basis, up from 4.84% in the first quarter of 2007, the Mortgage Bankers Association reported Thursday, based on its National Delinquency Survey.
The seasonally adjusted total delinquency rate is the highest recorded in the MBA survey since 1979.
The delinquency rate includes loans that are at least one payment past due but does not include loans in the process of foreclosure. The portion of loans in foreclosure was 2.47% at the end of the first quarter, up from 1.28% a year earlier. The portion of loans on which foreclosure actions were started during the quarter was 0.99% on a seasonally adjusted basis, up from 0.58% a year earlier, MBA’s survey found.
The increase in the overall delinquency rate was driven by increases in the number of loans 60 and 90 or more days past due, primarily in California and Florida, MBA reports. The 30-day delinquency percentage is still below levels seen as recently as 2002.
However, the rate of foreclosure starts and the portion of loans in the process of foreclosure both were at the highest levels recorded since 1979.
“The magnitude of the national increases is clearly driven by certain loan types and certain states,” Jay Brinkmann, MBA’s vice president for research and economics, said in a news release. “For example, while subprime ARMs represent 6% of the loans outstanding, they represented 39% of the foreclosures started during the first quarter.”
In contrast, prime ARMs represent 15% of the loans outstanding but 23% of the foreclosures started. Of approximately 516,000 foreclosures started during the first quarter, subprime ARM loans accounted for about 195,000 and prime ARM loans 117,000, but the increase in prime ARM foreclosures exceeded subprime ARM foreclosures by 29,000 and 20,000, respectively, over the previous quarter.
“The problems in California and Florida are extraordinary,” Brinkmann commented. The quarterly rate of foreclosure starts on subprime ARM loans in California was 9.24% and 8.25% in Florida, driving up the national average foreclosure start rate. California saw approximately 109,000 foreclosure starts and Florida 77,000 during the March quarter.
Mortgage Applications Fell Last Week
The Mortgage Bankers Association’s Market Composite Index for the week ended May 30 was 502.3, down 15.3% on a seasonally adjusted basis from 593.3 one week earlier. The results were adjusted to account for the Memorial Day holiday.
The Refinance Index fell 25.7% to 1496.1 from 2013.5 the previous week and the seasonally adjusted Purchase Index slipped 5.4% lower to 333.6 from 352.7 one week earlier. The Conventional Purchase Index fell 6.1%.
The refinance share of mortgage activity declined to 40.6% of total applications from 46.1% the previous week. The adjustable-rate mortgage (ARM) share of activity decreased to 8.7% from 9.3% of total applications from the previous week.
The average contract interest rate for 30-year fixed-rate mortgages increased to 6.17% from 5.96%. The average rate for 15-year fixed-rate mortgages rose to 5.7% from 5.49%, and the rate for one-year ARMs fell to 6.8% from 6.92%.
© 2008 CreditandCollectionsWorld.com and SourceMedia, Inc. All rights reserved.
© 2008 CreditandCollectionsWorld.com and SourceMedia, Inc. All rights reserved.
The delinquency rate for mortgage loans on one- to four-unit residential properties stood at 6.35% of all loans outstanding at the end of the first quarter of 2008 on a seasonally adjusted basis, up from 4.84% in the first quarter of 2007, the Mortgage Bankers Association reported Thursday, based on its National Delinquency Survey.
The seasonally adjusted total delinquency rate is the highest recorded in the MBA survey since 1979.
The delinquency rate includes loans that are at least one payment past due but does not include loans in the process of foreclosure. The portion of loans in foreclosure was 2.47% at the end of the first quarter, up from 1.28% a year earlier. The portion of loans on which foreclosure actions were started during the quarter was 0.99% on a seasonally adjusted basis, up from 0.58% a year earlier, MBA’s survey found.
The increase in the overall delinquency rate was driven by increases in the number of loans 60 and 90 or more days past due, primarily in California and Florida, MBA reports. The 30-day delinquency percentage is still below levels seen as recently as 2002.
However, the rate of foreclosure starts and the portion of loans in the process of foreclosure both were at the highest levels recorded since 1979.
“The magnitude of the national increases is clearly driven by certain loan types and certain states,” Jay Brinkmann, MBA’s vice president for research and economics, said in a news release. “For example, while subprime ARMs represent 6% of the loans outstanding, they represented 39% of the foreclosures started during the first quarter.”
In contrast, prime ARMs represent 15% of the loans outstanding but 23% of the foreclosures started. Of approximately 516,000 foreclosures started during the first quarter, subprime ARM loans accounted for about 195,000 and prime ARM loans 117,000, but the increase in prime ARM foreclosures exceeded subprime ARM foreclosures by 29,000 and 20,000, respectively, over the previous quarter.
“The problems in California and Florida are extraordinary,” Brinkmann commented. The quarterly rate of foreclosure starts on subprime ARM loans in California was 9.24% and 8.25% in Florida, driving up the national average foreclosure start rate. California saw approximately 109,000 foreclosure starts and Florida 77,000 during the March quarter.
Mortgage Applications Fell Last Week
The Mortgage Bankers Association’s Market Composite Index for the week ended May 30 was 502.3, down 15.3% on a seasonally adjusted basis from 593.3 one week earlier. The results were adjusted to account for the Memorial Day holiday.
The Refinance Index fell 25.7% to 1496.1 from 2013.5 the previous week and the seasonally adjusted Purchase Index slipped 5.4% lower to 333.6 from 352.7 one week earlier. The Conventional Purchase Index fell 6.1%.
The refinance share of mortgage activity declined to 40.6% of total applications from 46.1% the previous week. The adjustable-rate mortgage (ARM) share of activity decreased to 8.7% from 9.3% of total applications from the previous week.
The average contract interest rate for 30-year fixed-rate mortgages increased to 6.17% from 5.96%. The average rate for 15-year fixed-rate mortgages rose to 5.7% from 5.49%, and the rate for one-year ARMs fell to 6.8% from 6.92%.
© 2008 CreditandCollectionsWorld.com and SourceMedia, Inc. All rights reserved.
© 2008 CreditandCollectionsWorld.com and SourceMedia, Inc. All rights reserved.
Wednesday, May 28, 2008
The Truth Behind the Mortgage Flyer
Here's a different way to make the point we always harp on during the Future of Real Estate radio and television shows. The Mortgage Cicerone. Don't be fooled when you buy a home or refinance your house in Tulsa, OK.
Tuesday, May 27, 2008
Good News From Oklahoma House & Senate
Legislative Victories - May, 2008/News From Tulsa Metro Chamber of Commerce
The biggest achievement of the session is the passage today of the state bond issue to fund $25 million for Arkansas River improvements. The Oklahoma Senate voted 43-5 for the bond this morning and the House is expected to pass with a comfortable margin this afternoon. The money will fund improvements to the Zink dam and help construct two additional dams in Sand Springs and Jenks. This funding gives us money to add to the Vision 2025 funding and match the $50 million in federal funding Senator Jim Inhofe secured through the Water Resources Development Act last year. We will be able to actually see water in our river.
The transportation bond passed in the House today, 95-5 in favor, and the Senate is expected to pass as well, which gives us $300 million for projects in the “Eight Year Plan”. The deal includes raising the cap and removing the trigger, which will provide another $325 million over the next ten years, to full fund the project list in the plan. All of these funding elements were on the ONE VOICE list and were Chamber priorities.
The bond for $100 million to match the private gifts to Oklahoma colleges and universities for endowed chairs also passed in the Senate and is fully expected to pass the House.
The Legislature passed and the Governor has already signed SB 1943, the Oklahoma Local Development and Enterprise Zone Incentive Leverage Act. Authored by Sen. Mike Mazzei (R-Bixby), the bill provides incentives to develop major tourism attractions in Tulsa, Oklahoma City and at several resorts. This bill applies to designated enterprise zones, which for Tulsa would be in downtown and adjacent areas.
HB 3239, by Rep. Skye McNiel (R-Bristow) and Sen. Mike Mazzei (R-Bixby) offers incentives to employers and engineering employees in the aerospace industry. It is a ground-breaking package that will give some much needed tools to our burgeoning aerospace employers as they try to overcome significant nation-wide engineering shortages. The bill provides a $5,000/year tax credit for engineers hired by Oklahoma aerospace companies, a compensation based tax credit to aerospace employers (more for Oklahoma educated engineers than for those hired from out-of-state) and a tuition reimbursement tax credit for the employer of $1,800/year for up to four years if the company reimburses the employee for their tuition. This will be a really useful tool to attract young engineers to Oklahoma companies.
The Quality Jobs Act, SB 2163, was amended, thanks to Senator Mike Mazzei (R-Bixby) and Representative Ron Peters (R-Broken Arrow), to add NAICS codes covering two growing Tulsa companies, the Society of Engineering Geophysicists and Williams and Williams Worldwide Auction House. Both companies plan to grow considerably in Tulsa and more than meet the out-of-state revenue, salary and payroll criteria, but were excluded because their NAICS codes were not included in the statute. Qualifying for Oklahoma’s Quality Jobs help both companies resist efforts to lure them to Texas.
Sometimes it is just plain fun to share good news with everyone! All of the above is awesome for those of us that want our city and state to succeed and grow for the future.
Have a wonderful week!
Jeff Sargent
President-Residential Mortgage Division
ONB Bank & Trust Co
8908 S Yale Ave
Tulsa, OK 74137
Office: 918.481.6833
Cell: 918.636.0630
jeff_sargent@onbbank.com
The biggest achievement of the session is the passage today of the state bond issue to fund $25 million for Arkansas River improvements. The Oklahoma Senate voted 43-5 for the bond this morning and the House is expected to pass with a comfortable margin this afternoon. The money will fund improvements to the Zink dam and help construct two additional dams in Sand Springs and Jenks. This funding gives us money to add to the Vision 2025 funding and match the $50 million in federal funding Senator Jim Inhofe secured through the Water Resources Development Act last year. We will be able to actually see water in our river.
The transportation bond passed in the House today, 95-5 in favor, and the Senate is expected to pass as well, which gives us $300 million for projects in the “Eight Year Plan”. The deal includes raising the cap and removing the trigger, which will provide another $325 million over the next ten years, to full fund the project list in the plan. All of these funding elements were on the ONE VOICE list and were Chamber priorities.
The bond for $100 million to match the private gifts to Oklahoma colleges and universities for endowed chairs also passed in the Senate and is fully expected to pass the House.
The Legislature passed and the Governor has already signed SB 1943, the Oklahoma Local Development and Enterprise Zone Incentive Leverage Act. Authored by Sen. Mike Mazzei (R-Bixby), the bill provides incentives to develop major tourism attractions in Tulsa, Oklahoma City and at several resorts. This bill applies to designated enterprise zones, which for Tulsa would be in downtown and adjacent areas.
HB 3239, by Rep. Skye McNiel (R-Bristow) and Sen. Mike Mazzei (R-Bixby) offers incentives to employers and engineering employees in the aerospace industry. It is a ground-breaking package that will give some much needed tools to our burgeoning aerospace employers as they try to overcome significant nation-wide engineering shortages. The bill provides a $5,000/year tax credit for engineers hired by Oklahoma aerospace companies, a compensation based tax credit to aerospace employers (more for Oklahoma educated engineers than for those hired from out-of-state) and a tuition reimbursement tax credit for the employer of $1,800/year for up to four years if the company reimburses the employee for their tuition. This will be a really useful tool to attract young engineers to Oklahoma companies.
The Quality Jobs Act, SB 2163, was amended, thanks to Senator Mike Mazzei (R-Bixby) and Representative Ron Peters (R-Broken Arrow), to add NAICS codes covering two growing Tulsa companies, the Society of Engineering Geophysicists and Williams and Williams Worldwide Auction House. Both companies plan to grow considerably in Tulsa and more than meet the out-of-state revenue, salary and payroll criteria, but were excluded because their NAICS codes were not included in the statute. Qualifying for Oklahoma’s Quality Jobs help both companies resist efforts to lure them to Texas.
Sometimes it is just plain fun to share good news with everyone! All of the above is awesome for those of us that want our city and state to succeed and grow for the future.
Have a wonderful week!
Jeff Sargent
President-Residential Mortgage Division
ONB Bank & Trust Co
8908 S Yale Ave
Tulsa, OK 74137
Office: 918.481.6833
Cell: 918.636.0630
jeff_sargent@onbbank.com
Monday, May 12, 2008
FHA NEWS
FHA premiums to be based on risk
Pricing plan coincides with FHA expansion
By Inman News, Friday, May 9, 2008.
The Bush administration proposes to implement "risk-based" pricing of premiums paid by borrowers with government-backed loans beginning July 14 -- the same day guidelines for FHA loan guarantee programs are to be expanded to serve more delinquent borrowers.
The more flexible pricing structure, which would also allow FHA to reduce mortgage insurance premiums for some borrowers with good credit, is intended to enable the government to serve more troubled borrowers while protecting taxpayers from losses, HUD officials said. The proposed change in pricing will be published in the Federal Register for public comment on May 13.
Under the current pricing structure, all borrowers regardless of their credit standing pay 1.5 percent of loan balance up front and 0.5 percent a year. Under risk-based pricing, the upfront premium will range from 1.25 percent to 2.25 percent.
On a $150,000 mortgage, the difference between the existing 1.5 percent upfront premium and the 2.25 percent premium is about $7 per month, HUD says.
Risk-based pricing has been a controversial aspect of so-called "FHA modernization" legislation, with some opponents worried that borrowers who can least afford the fees will be overcharged. A sweeping housing bill approved by the House on Thursday would require FHA to refund extra premiums charged to higher-risk borrowers if they do not default on their loans.
The Bush administration says it needs to implement risk-based pricing to ensure that claims filed by lenders when FHA loans go bad are covered by premiums collected from borrowers, and not paid by taxpayers.
"By charging different premiums, FHA will operate like most other insurance companies," HUD said in a statement. "This premium structure will preserve lower premium costs for FHA's traditional borrowers, including low-income and minority families who have a strong credit history and save for a down payment."
Claims against FHA's insurance fund are expected to rise, in part because FHA loan limits have been increased to as much as $729,500 in high-cost markets, and also because of a new program aimed at helping troubled borrowers refinance into more affordable loans.
The new FHASecure program, rolled out by the Bush administration in August, was originally designed to help borrowers who had fallen behind on payments on adjustable-rate mortgage (ARM) loans after an interest-rate reset.
On April 9, the administration said it would expand the FHASecure program by creating two new categories of eligible borrowers:
Borrowers with adjustable-rate mortgage (ARM) loans who were late on two consecutive monthly mortgage payments or at two different times over the previous 12 months. FHA will require a 97 percent loan-to-value (LTV) ratio for these borrowers to refinance into a government-backed loan -- which in many cases would require lenders to write down some principal.
Borrowers with ARM loans who were late on three consecutive monthly mortgage payments or at three different times over the past 12 months. FHA will require a 90 percent LTV ratio for these borrowers to refinance.
HUD said the expanded FHASecure guidelines are set to be implemented on July 14 in conjunction with risk-based premium pricing.
HUD estimates that FHASecure has helped 150,000 borrowers refinance since the program was launched and that the expanded guidelines will help as many as 500,000 homeowners take advantage of the program by the end of the year. FHASecure accounted for $28.5 billion of the $68 billion in loans FHA has helped facilitate since September, HUD says.
Democrats are pushing for an even bigger, $300 billion expansion of FHA loan guarantee programs to enable up to 2 million FHA-backed refinance loans in cases where lenders agree to accept no more than 85 percent of a property's current appraised value. That plan, which is opposed by the Bush administration, is part of the housing bill HR 3121 approved by the House Thursday (see story).
***
Pricing plan coincides with FHA expansion
By Inman News, Friday, May 9, 2008.
The Bush administration proposes to implement "risk-based" pricing of premiums paid by borrowers with government-backed loans beginning July 14 -- the same day guidelines for FHA loan guarantee programs are to be expanded to serve more delinquent borrowers.
The more flexible pricing structure, which would also allow FHA to reduce mortgage insurance premiums for some borrowers with good credit, is intended to enable the government to serve more troubled borrowers while protecting taxpayers from losses, HUD officials said. The proposed change in pricing will be published in the Federal Register for public comment on May 13.
Under the current pricing structure, all borrowers regardless of their credit standing pay 1.5 percent of loan balance up front and 0.5 percent a year. Under risk-based pricing, the upfront premium will range from 1.25 percent to 2.25 percent.
On a $150,000 mortgage, the difference between the existing 1.5 percent upfront premium and the 2.25 percent premium is about $7 per month, HUD says.
Risk-based pricing has been a controversial aspect of so-called "FHA modernization" legislation, with some opponents worried that borrowers who can least afford the fees will be overcharged. A sweeping housing bill approved by the House on Thursday would require FHA to refund extra premiums charged to higher-risk borrowers if they do not default on their loans.
The Bush administration says it needs to implement risk-based pricing to ensure that claims filed by lenders when FHA loans go bad are covered by premiums collected from borrowers, and not paid by taxpayers.
"By charging different premiums, FHA will operate like most other insurance companies," HUD said in a statement. "This premium structure will preserve lower premium costs for FHA's traditional borrowers, including low-income and minority families who have a strong credit history and save for a down payment."
Claims against FHA's insurance fund are expected to rise, in part because FHA loan limits have been increased to as much as $729,500 in high-cost markets, and also because of a new program aimed at helping troubled borrowers refinance into more affordable loans.
The new FHASecure program, rolled out by the Bush administration in August, was originally designed to help borrowers who had fallen behind on payments on adjustable-rate mortgage (ARM) loans after an interest-rate reset.
On April 9, the administration said it would expand the FHASecure program by creating two new categories of eligible borrowers:
Borrowers with adjustable-rate mortgage (ARM) loans who were late on two consecutive monthly mortgage payments or at two different times over the previous 12 months. FHA will require a 97 percent loan-to-value (LTV) ratio for these borrowers to refinance into a government-backed loan -- which in many cases would require lenders to write down some principal.
Borrowers with ARM loans who were late on three consecutive monthly mortgage payments or at three different times over the past 12 months. FHA will require a 90 percent LTV ratio for these borrowers to refinance.
HUD said the expanded FHASecure guidelines are set to be implemented on July 14 in conjunction with risk-based premium pricing.
HUD estimates that FHASecure has helped 150,000 borrowers refinance since the program was launched and that the expanded guidelines will help as many as 500,000 homeowners take advantage of the program by the end of the year. FHASecure accounted for $28.5 billion of the $68 billion in loans FHA has helped facilitate since September, HUD says.
Democrats are pushing for an even bigger, $300 billion expansion of FHA loan guarantee programs to enable up to 2 million FHA-backed refinance loans in cases where lenders agree to accept no more than 85 percent of a property's current appraised value. That plan, which is opposed by the Bush administration, is part of the housing bill HR 3121 approved by the House Thursday (see story).
***
Wednesday, May 7, 2008
To refinance or not to refinance, that is the question.
To refinance or not to refinance, that is the question. This may not be as simple of a question as you may think. Refinancing involves time, energy and money. There are times when refinancing is not worthwhile and then there are times when it is advisable. . Let’s look at a few of the scenarios which may indicate that it is a good time to refinance:
1. The current rate is lower than your loan rate. There is not an easy formula of how much lower the rate needs to be for it to be financially profitable, but generally speaking, a difference of one percentage point can make a difference of hundreds of dollars a year. A savings of even $500 a year can make the process of refinancing worthwhile over the life of a 30 year loan.
2. Your credit score has improved. The Fair Isaac Corporation, or FICO, has a rating system that quite simply rates the amount of risk a lending institution sees in you as a borrower. If you had a poor FICO, and received a loan, you may have had either a bad rate, or loan terms which may be less than favorable. If you have been able to improve your FICO, it may be in your best interest to refinance. Contact a loan professional to see if you may benefit.
3. Your financial situation has changed for the better. Lenders make decisions based off of your overall financial representation. Should you change jobs and receive an increase in salary or maybe pay off a large debt, you may want to look at a refinance as well. Your overall financial picture of debt compared to income can impact your loan rate and loan terms. Another time to look at refinancing is if your home has changed in value. Many people like to pay off high interest credit card debt with the lower interest based on the equity of their home.
Everyone’s financial scenario is different, thus the answer to the question of to refinance or not to refinance depends on getting good financial advice from a trusted and knowledgeable loan professional.
Homeland Capital Mortgage is located in Tulsa, OK and makes home loans to first time home buyer to luxury home buyers.
1. The current rate is lower than your loan rate. There is not an easy formula of how much lower the rate needs to be for it to be financially profitable, but generally speaking, a difference of one percentage point can make a difference of hundreds of dollars a year. A savings of even $500 a year can make the process of refinancing worthwhile over the life of a 30 year loan.
2. Your credit score has improved. The Fair Isaac Corporation, or FICO, has a rating system that quite simply rates the amount of risk a lending institution sees in you as a borrower. If you had a poor FICO, and received a loan, you may have had either a bad rate, or loan terms which may be less than favorable. If you have been able to improve your FICO, it may be in your best interest to refinance. Contact a loan professional to see if you may benefit.
3. Your financial situation has changed for the better. Lenders make decisions based off of your overall financial representation. Should you change jobs and receive an increase in salary or maybe pay off a large debt, you may want to look at a refinance as well. Your overall financial picture of debt compared to income can impact your loan rate and loan terms. Another time to look at refinancing is if your home has changed in value. Many people like to pay off high interest credit card debt with the lower interest based on the equity of their home.
Everyone’s financial scenario is different, thus the answer to the question of to refinance or not to refinance depends on getting good financial advice from a trusted and knowledgeable loan professional.
Homeland Capital Mortgage is located in Tulsa, OK and makes home loans to first time home buyer to luxury home buyers.
Tuesday, May 6, 2008
Spring Has Sprung-Make Your Home a Healthy One
SPRING HAS SPRUNG, and that means it's time to wash away those winter blues! In fact, according to the Soap and Detergent Association - did you even know there was such a thing? Three fourths of Americans engage in spring-cleaning. Their survey indicates that more than 80 percent of people who spring clean agree that it helps them save time throughout the year, and 96 percent of people donate or discard items during their spring-cleaning.
But the advantages can go much further than that. Check out these top ten spring-cleaning activities, compiled by http://www.medicinenet.com/ that can help make your home healthier and safer:
Thoroughly dust your home.
Clean any air conditioning and heating filters, ducts, and vents to minimize pollens and other airborne allergens.
Organize your medicine cabinet.
Throw away expired medications and old prescription medicines that you no longer need.
Inventory your garage and basement.
Get rid of any old paint, thinners, oils, solvents, stains, and other similar items you no longer need.
Note: You may need to take these items to a hazardous waste drop off center or look on Darryl Baskin's website for helpful hints on how and where to lose these items..
Take an inventory under your sinks and around your house.
Get rid of old or potentially toxic cleaning products.
Have your chimney professionally cleaned. This will help you lessen the chances of carbon monoxide exposure when the cold weather returns.
Clean all mold and mildew from bathrooms and other damp areas. Use non-toxic cleaning products.
Check your rugs. Make sure that rugs on bare floors have non-skid mats and that older or dusty mats are either washed or replaced.
Inspect outdoor playground equipment. Make sure that all elements are sturdy and safe, especially guardrails, protruding bolts, and other potential sources of injury.
Change your batteries. Do so for both smoke detectors and carbon monoxide detectors.
Collect old batteries throughout the house for disposal. Dispose of them in a battery recycling or hazardous waste center.
Hey, please make it easy on yourself... take it one room, one cleaning task at a time.
You'll be more likely to accomplish more if you tackle each springcleaning project separately. And that's great advice...any time of year!
Please keep in mind that our Tulsa economy continues to be strong and we should all be happy to live, work and raise our families in such a wonderful city.
Thank you,
Jeff Sargent
President-Residential Mortgage Division
ONB Bank & Trust Co
8908 S Yale Ave, Suite 250
Tulsa, OK 74137
Office: 918.392.6572
Cell: 918.636.0630
Fax: 918.392.6550
jeff_sargent@onbbank.com
But the advantages can go much further than that. Check out these top ten spring-cleaning activities, compiled by http://www.medicinenet.com/ that can help make your home healthier and safer:
Thoroughly dust your home.
Clean any air conditioning and heating filters, ducts, and vents to minimize pollens and other airborne allergens.
Organize your medicine cabinet.
Throw away expired medications and old prescription medicines that you no longer need.
Inventory your garage and basement.
Get rid of any old paint, thinners, oils, solvents, stains, and other similar items you no longer need.
Note: You may need to take these items to a hazardous waste drop off center or look on Darryl Baskin's website for helpful hints on how and where to lose these items..
Take an inventory under your sinks and around your house.
Get rid of old or potentially toxic cleaning products.
Have your chimney professionally cleaned. This will help you lessen the chances of carbon monoxide exposure when the cold weather returns.
Clean all mold and mildew from bathrooms and other damp areas. Use non-toxic cleaning products.
Check your rugs. Make sure that rugs on bare floors have non-skid mats and that older or dusty mats are either washed or replaced.
Inspect outdoor playground equipment. Make sure that all elements are sturdy and safe, especially guardrails, protruding bolts, and other potential sources of injury.
Change your batteries. Do so for both smoke detectors and carbon monoxide detectors.
Collect old batteries throughout the house for disposal. Dispose of them in a battery recycling or hazardous waste center.
Hey, please make it easy on yourself... take it one room, one cleaning task at a time.
You'll be more likely to accomplish more if you tackle each springcleaning project separately. And that's great advice...any time of year!
Please keep in mind that our Tulsa economy continues to be strong and we should all be happy to live, work and raise our families in such a wonderful city.
Thank you,
Jeff Sargent
President-Residential Mortgage Division
ONB Bank & Trust Co
8908 S Yale Ave, Suite 250
Tulsa, OK 74137
Office: 918.392.6572
Cell: 918.636.0630
Fax: 918.392.6550
jeff_sargent@onbbank.com
Tuesday, April 22, 2008
Nehemiah WINS Lawsuit against HUD!
APRIL 2008
Judge Lawrence K. Karlton of the United States District Court for the Eastern District of California upheld Nehemiah’s motion for summary judgment and invalidated the U.S. Department of Housing and Urban Development (HUD) rule to ban private downpayment assistance as proposed in the “Standards for Mortgagor’s Investment in Mortgaged Property” regulation published October 1, 2007. To be clear, this rule cannot be enforced by HUD and is no longer a threat to private downpayment assistance programs. We are thrilled with the Court’s decision to support low-to-moderate income families across the country by ruling against HUD’s attempt to ban private downpayment assistance,” said Scott Syphax, President and CEO of Nehemiah Corporation of America. This is a major and conclusive judgment, leaving no uncertainty that downpayment assistance is a life line to the families that Nehemiah serves. It is heartening to see that the Court’s arguments echo our sentiments and concerns. This decision preserves access and supports the use of sensible and reasonable approaches to homeownership for millions of working class families. It is a privilege to continue providing a helping hand to America’s underserved families by building both safer communities and financial strength through homeownership. As we have said before, we look forward to working with HUD to support deserving families across the country.” To read more about Nehemiah's court victory, visit: http://www.getdownpayment.com/updates/insidetrack.asp The Regulatory Updates section of our website details significant issues relating to DPA regulatory and legislative events. Check back for new postings or sign-up to have accurate and timely information delivered to you.
Get Certified as a Designated Nehemiah Specialist:
Receive $100 Off Coupon!
The busy home buying season is here! Nehemiah offers many unique value-added services and resources that can assist you in procuring buyers. At Nehemiah we are dedicated to training mortgage and real estate professionals on The Nehemiah Program® and downpayment assistance which will enable you to assist more buyers in their quest for homeownership. Contact me today to schedule a training session for your group or office on The Nehemiah Program. All attendees will earn a Designated Nehemiah Specialist Certificate and a $100 off coupon on their first Nehemiah transaction.
Using The Nehemiah Program is Simple!
The Nehemiah Program® is committed to providing the easiest and best service possible. Did you know that your homebuyers only have to sign a one-page gift letter? Did you know that the seller only signs a one-page Participating Home Agreement?
Mortgage Lenders:
Register to use Nehemiah’s Online Processing System
Nehemiah gift funds can be requested using the Nehemiah Online Processing System (OPS®) or with a standard paper form. Online gift funds requests are processed same day. If you’re new to Nehemiah, there is a simple one-time registration process to begin using our online system. To register for OPS, go to:
https://www.getdownpayment.com/ops/lendertype.asp and follow the screen prompts to complete your registration. Should you have any questions or concerns while you are completing your registration, please call Customer Service at (877) 634-3642. Customer Service Specialists are available Monday through Friday from 9:00am to 8:00pm EST. Since 1997, The Nehemiah Program® has provided over $1 billion in downpayment assistance gifts, resulting in $32 billion in real estate transactions and has helped over 250,000 families and individuals achieve their dream of homeownership.
If you do not wish to receive this email in the future please reply and type the word REMOVE in the subject line. The Nehemiah Program®
424 North 7th Street, Suite 250
Sacramento, CA 95811
(877) 634-3642
© 2008
Judge Lawrence K. Karlton of the United States District Court for the Eastern District of California upheld Nehemiah’s motion for summary judgment and invalidated the U.S. Department of Housing and Urban Development (HUD) rule to ban private downpayment assistance as proposed in the “Standards for Mortgagor’s Investment in Mortgaged Property” regulation published October 1, 2007. To be clear, this rule cannot be enforced by HUD and is no longer a threat to private downpayment assistance programs. We are thrilled with the Court’s decision to support low-to-moderate income families across the country by ruling against HUD’s attempt to ban private downpayment assistance,” said Scott Syphax, President and CEO of Nehemiah Corporation of America. This is a major and conclusive judgment, leaving no uncertainty that downpayment assistance is a life line to the families that Nehemiah serves. It is heartening to see that the Court’s arguments echo our sentiments and concerns. This decision preserves access and supports the use of sensible and reasonable approaches to homeownership for millions of working class families. It is a privilege to continue providing a helping hand to America’s underserved families by building both safer communities and financial strength through homeownership. As we have said before, we look forward to working with HUD to support deserving families across the country.” To read more about Nehemiah's court victory, visit:
Get Certified as a Designated Nehemiah Specialist:
Receive $100 Off Coupon!
The busy home buying season is here! Nehemiah offers many unique value-added services and resources that can assist you in procuring buyers. At Nehemiah we are dedicated to training mortgage and real estate professionals on The Nehemiah Program® and downpayment assistance which will enable you to assist more buyers in their quest for homeownership. Contact me today
Using The Nehemiah Program is Simple!
The Nehemiah Program® is committed to providing the easiest and best service possible. Did you know that your homebuyers only have to sign a one-page gift letter? Did you know that the seller only signs a one-page Participating Home Agreement?
Mortgage Lenders:
Register to use Nehemiah’s Online Processing System
Nehemiah gift funds can be requested using the Nehemiah Online Processing System (OPS®) or with a standard paper form. Online gift funds requests are processed same day. If you’re new to Nehemiah, there is a simple one-time registration process to begin using our online system. To register for OPS, go to:
If you do not wish to receive this email in the future please reply and type the word REMOVE in the subject line.
424 North 7th Street, Suite 250
Sacramento, CA 95811
(877) 634-3642
© 2008
Friday, April 11, 2008
Old British Word Fun: What is a Mortgage?
WORD HISTORY: The great jurist Sir Edward Coke, who lived from 1552 to 1634, has explained why the term mortgage comes from the Old French words mort, “dead,” and gage, “pledge.” It seemed to him that it had to do with the doubtfulness of whether or not the mortgagor will pay the debt. If the mortgagor does not, then the land pledged to the mortgagee as security for the debt “is taken from him for ever, and so dead to him upon condition, &c. And if he doth pay the money, then the pledge is dead as to the [mortgagee].” This etymology, as understood by 17th-century attorneys, of the Old French term morgage, which we adopted, may well be correct. The term has been in English much longer than the 17th century, being first recorded in Middle English with the form mortgage and the figurative sense “pledge” in a work written before 1393.
Well, now you know...
Have a great weekend and please don't forget to vist Darryl Baskin's website at darrylbaskin.com to learn about the CASA Homes Tour this weekend!
If you have questions about mortgages, please do not hesitate to call us any time at 918.481.6833.
Sincerely,
Jeff Sargent
President
ONB Bank & Trust Residential Mortgage Division
8908 S Yale Ave, Suite 250
Tulsa, OK 74137
Office: 918.481.6833
jeff_sargent@onbbank.com
member FDIC
Well, now you know...
Have a great weekend and please don't forget to vist Darryl Baskin's website at darrylbaskin.com to learn about the CASA Homes Tour this weekend!
If you have questions about mortgages, please do not hesitate to call us any time at 918.481.6833.
Sincerely,
Jeff Sargent
President
ONB Bank & Trust Residential Mortgage Division
8908 S Yale Ave, Suite 250
Tulsa, OK 74137
Office: 918.481.6833
jeff_sargent@onbbank.com
member FDIC
Saturday, April 5, 2008
Mortgage Questions & Sensible Answers
Great questions - here are some answers.
Buying a home or refinancing is one of the largest financial decisions you will make in your life - and unfortunately, this means you may experience some stress as you approach these decisions. As in many other industries, the mortgage industry has more than its share of unethical individuals that are out to make a buck, but do not have your best interest at heart, and may try to take advantage of your stress at this point in your life. For example, I have heard numerous stories about people being called and told that they need to "quickly come into the office and get all the paperwork signed, rates are changing". It is not true; you should never be made to feel panicked or pressured about making this size of a financial decision. If you are definitely ready a rate can be locked right over the phone.
Advertisements in the newspaper or online are also rampant with misinformation, designed only to get phones ringing. Rates change daily, sometimes hourly, so just by virtue of being in print somewhere, they are almost sure to be outdated. The trick is, lenders can put anything out there, and if it gets the phone to ring, that is all they need. The following conversation ensues….."Hello, I'm calling about the 5.5% rate I saw that you advertised in Sunday's newspaper?" "Well, it's wonderful that you called! Rates did change a bit this morning, and are now at 6.875%, but let's talk a little more about you……"
Lenders will also frequently promote "free appraisals" or "discounted origination fees". This is great, but BE AWARE that if you are not paying for it one place, you are paying for it somewhere else. Interest rates and closing costs go hand in hand, so it is important to look at the overall loan package, not just one individual item that seems discounted. We all work off the same financial markets with essentially the same profit margins. Do we make money when we do your loan? Certainly, just like you get paid for working at your job. What we seek for you is the best balance between a great interest rate and reasonable closing costs.
Online lending is also particularly scary - anybody can throw together a mortgage website, and be aware that the person behind that great rate you are seeing online might be some guy working out of his basement in Kentycky who has been in the business for 4 months. Did you know that closing costs vary significantly state to state? Each state does indeed have different laws and different costs. Oklahoma is the only state in the U.S. that still has abstracting; Iowa voted out the concept several years ago and their costs decreased dramatically. Out of state lenders frequently misquote fees, as they are not aware of local and state requirements. So often people think they are getting a better deal when getting information from the internet lenders and often call us after they were lured in by an offer that seemed too good to be true, but then the lender could not deliver what they promised in the beginning at the closing. I have been in mortgage banking for over 24 years and would not trust my own loan to any online, unknown lender. How do you know if you are dealing with an online predator? Are you really willing to take this risk? Please call us for advice and we will be happy to answer any questions you may have regarding financing a home.
Thank you,
Jeff Sargent
President
ONB Bank & Trust Co/Residential Mortgage Division
8908 S Yale Ave, Suite 250
Tulsa,OK 74137
918.481.6833
jeff_sargent@onbbank.com
Buying a home or refinancing is one of the largest financial decisions you will make in your life - and unfortunately, this means you may experience some stress as you approach these decisions. As in many other industries, the mortgage industry has more than its share of unethical individuals that are out to make a buck, but do not have your best interest at heart, and may try to take advantage of your stress at this point in your life. For example, I have heard numerous stories about people being called and told that they need to "quickly come into the office and get all the paperwork signed, rates are changing". It is not true; you should never be made to feel panicked or pressured about making this size of a financial decision. If you are definitely ready a rate can be locked right over the phone.
Advertisements in the newspaper or online are also rampant with misinformation, designed only to get phones ringing. Rates change daily, sometimes hourly, so just by virtue of being in print somewhere, they are almost sure to be outdated. The trick is, lenders can put anything out there, and if it gets the phone to ring, that is all they need. The following conversation ensues….."Hello, I'm calling about the 5.5% rate I saw that you advertised in Sunday's newspaper?" "Well, it's wonderful that you called! Rates did change a bit this morning, and are now at 6.875%, but let's talk a little more about you……"
Lenders will also frequently promote "free appraisals" or "discounted origination fees". This is great, but BE AWARE that if you are not paying for it one place, you are paying for it somewhere else. Interest rates and closing costs go hand in hand, so it is important to look at the overall loan package, not just one individual item that seems discounted. We all work off the same financial markets with essentially the same profit margins. Do we make money when we do your loan? Certainly, just like you get paid for working at your job. What we seek for you is the best balance between a great interest rate and reasonable closing costs.
Online lending is also particularly scary - anybody can throw together a mortgage website, and be aware that the person behind that great rate you are seeing online might be some guy working out of his basement in Kentycky who has been in the business for 4 months. Did you know that closing costs vary significantly state to state? Each state does indeed have different laws and different costs. Oklahoma is the only state in the U.S. that still has abstracting; Iowa voted out the concept several years ago and their costs decreased dramatically. Out of state lenders frequently misquote fees, as they are not aware of local and state requirements. So often people think they are getting a better deal when getting information from the internet lenders and often call us after they were lured in by an offer that seemed too good to be true, but then the lender could not deliver what they promised in the beginning at the closing. I have been in mortgage banking for over 24 years and would not trust my own loan to any online, unknown lender. How do you know if you are dealing with an online predator? Are you really willing to take this risk? Please call us for advice and we will be happy to answer any questions you may have regarding financing a home.
Thank you,
Jeff Sargent
President
ONB Bank & Trust Co/Residential Mortgage Division
8908 S Yale Ave, Suite 250
Tulsa,OK 74137
918.481.6833
jeff_sargent@onbbank.com
Wednesday, March 26, 2008
True Cost of Rural Home Ownership
The real cost of home ownership must be calculated with all factors including price, repairs and maintenance, utility consumption. But with the cost of fuel rising, it is more common Tulsa, OK home buyers are considering the cost of commuting to and from their homes. This consideration for Green Country home buyers may be even more important that that of many other home shoppers across the country since Tulsa, Broken Arrow, Jenks, Owasso, Skiatook, Collinsville, Sand Springs, and other communities in the Tulsa Metropolitan region cover a vast expanse of undeveloped area making travel to and from destinations a longer distance.
Comparing two homes with different locations and different prices? Use this special Commuting Calculator available to help with your decision.
Darryl Baskin sells homes in the Tulsa area and assists home buyers and sellers with the complex decisions of real estate. Make a plan for your financial future with the right real estate adviser. Call the Baskin Real Estate Specialists of cGraw Reaotrs at 918-258-2600. Shop Tulsa, OK houses online here.
Comparing two homes with different locations and different prices? Use this special Commuting Calculator available to help with your decision.
Darryl Baskin sells homes in the Tulsa area and assists home buyers and sellers with the complex decisions of real estate. Make a plan for your financial future with the right real estate adviser. Call the Baskin Real Estate Specialists of cGraw Reaotrs at 918-258-2600. Shop Tulsa, OK houses online here.
Buyers Preferences In Soft Housing Market
Even in the depths of the current cyclical housing downturn, consumers continue to be interested in housing and home builders can tap into that potential by paying careful attention to home buying preferences, according to two experts on market trends who presented their latest research findings at the International Builder's Show in Orlando last month.
Emerging as a strong draw for consumers this year is anything “green,” a market force that has been gaining strength with the continuing rise of energy costs, according to Gopal Ahluwalia, NAHB’s vice president of research.
“New home buyers are most influenced by greener choices that include energy-efficient features and equipment-based energy saving features,” said Ahluwalia. “They are also very interested in exterior features, such as a front porch, deck or patio in the rear, and exterior lighting. In addition, laundry rooms and dining rooms are widely considered to be essential in new homes.”
Gayle Butler, editor-in-chief of Better Homes and Gardens, confirmed that eco-friendly building is also very much on the radar of a growing number of consumers.
In a research study conducted by the magazine in January surveying more than 2,000 home enthusiasts from across the country who bought a new home in the past 10 years or plan to build one in the next 10 years, more than half of the respondents said they wanted green building and remodeling options presented to them. This number jumps to more than two out of three in the millennial age group.
Nineteen percent said that it is the responsibility of builders to use eco-friendly materials and build highly energy-efficient homes, even if it adds to the cost of the home, said Butler.
Thirty-one percent said their neighbors would buy a green home “when the cost of such homes are within 3% to 5% of conventional homes.”
Sparking Interest in a Down Market
When asked the best way for a builder to spark a buyer’s interest in today’s market, the Better Homes and Gardens survey found that 44% of the respondents prefer bonus home amenities and upgrades; 42% would like a discount on the price of a new home; 37% want the builder to buy their old home at a fair price; and 31% desire free professional decorating and landscaping advice.
“What we’ve discovered is that home continues to be our emotional center and the sweet spot of everyday life,” said Butler. “Economic uncertainty aside, we won’t stop spending, improving and dreaming when it comes to home.”
Better Homes and Gardens found that its readers prefer a home that accommodates modern lifestyles, has the flexibility to be adapted for future needs, is special “for me” and provides greener choices.
More specifically, 71% identified an all-new kitchen that looks great and is a fun place in which to work as an exciting feature to look for when shopping for a newly built home. Forty-three percent rated sufficient storage as a top priority and 41% cited a master suite “that feels like a luxurious hotel room.”
In the next five to 10 years, Butler reported, 50% of those under age 43 expect to need a home office that functions as a full-time work space, 30% of baby boomers expect an aging parent to move in and 66% of boomers expect to need guest accommodations for grown children and grandchildren.
Today’s home buyer prefers designs tailor-made for their specific needs. “Sixty-nine percent said no more cookie-cutter houses,” she said. “They want a house that has character and charm.”
Satisfaction With Kitchens and Baths
Although consumers generally prefer homes that are bigger and equipped with more amenities, said Ahluwalia, some features of new homes have now improved to the point where home buyers are relatively satisfied.
For example, while large kitchens are desirable, many consumers would be reluctant to see the kitchen expand further at the expense of other space, said Ahluwalia.
“Just over 37% of shoppers would sacrifice living space for a larger-than-average kitchen,” he said.
Home buyers are generally content with the number of bathrooms in typical new homes being built today, Ahluwalia said, and continuing a trend identified in earlier NAHB studies, more than one-third of home buyers do not think it is necessary to have a living room.
These conclusions come from a new NAHB survey of more than 2,300 recent and prospective home buyers that examined the features, amenities and layouts preferred in a new home.
Top-10 ‘Must-Have’ Features
Among the 10 features or designs most frequently rated as “essential/must have” before a consumer would consider buying a specific home, four were energy-related and two were exterior features.
A laundry room topped the list, rated essential by 55% of the survey respondents. Energy-related features in the top 10 included a high level of insulation (48%), exhaust fans (48%), Energy Star-rated windows (36%) and equipment-based energy saving measures (34%).
Exterior lighting (33%) and fenced yards (33%) were the two outdoor features that also made the top 10 list.
Of 21 different kitchen features, a walk-in pantry was rated as essential/must have or desirable by 86% of those surveyed, followed by an island work area (80%), built-in microwave (72%), drinking water filtration (69%) and special use storage (wine rack, spice drawer, pots and pans, cabinet, etc.) by 16%.
Granite/natural stone was the most popular kitchen counter material and a linen closet topped the list of bathroom features, with 89% of respondents categorizing it as essential/must have or desirable followed by an exhaust fan (88%), separate shower enclosure and water temperature control at 79% each.
The median home size of those surveyed was 1,835 square feet and the respondents said they wanted a median of 2,354 square feet in a new home. With the additional space, home shoppers expected to pay a median of $241,699, about 6% more than the $227,500 estimated median value of their current homes.
More than half (52%) of respondents prefer a master bedroom only on the second floor of a two-story home, while 16% prefer it on the first floor only and 22% would accept it on either floor.
More than two out of three respondents preferred nine-foot or higher ceilings on the first floor, and, continuing a popular trend of the last 20 years, more than 40% said they wanted the kitchen and family room to be adjacent and visually open, but with a half-wall separating the two rooms.
More than half of the respondents said they would like a minimum of four bedrooms, while 39% would accept three bedrooms.
Twenty-eight percent of those surveyed preferred at least three full bathrooms, one-third would like to have 2-1/2 bathrooms and 31% expressed satisfaction with only two bathrooms.
On the front exterior, brick was the most preferred, followed by stone, vinyl and stucco.
Remain positive even with the negative economic stories seen each night on the evening news. We live in Tulsa and still have a fantastic housing market and low mortgage rates. The above information is from the National Association of Home Builders and is very descriptive of present new housing trends. There are many great deals out there as new and existing homes continue to be listed.
For information about buying or selling a home please call Darryl Baskin or any member of his team of real estate specialists at 918.258.2600. For questions on mortgages, rates or expert advice on mortgage economics, please contact Jeff Sargent of ONB Bank & Trust Co at 918.481.6833. You can tune in to "The Future of Real Estate" show locally on KWHB TV Channel 47 (Cable 7) at 10 am Central Time each Saturday, Tulsa's Source for local real estate news and information.
Thank you and have a great week!
Jeff Sargent
President
ONB Bank & Trust Co/Residential Mortgage Division
8908 S Yale, Suite 250
Tulsa, OK 74137
Office: 918.392.6572
Cell: 918.636.0630
jeff_sargent@onbbank.com
Emerging as a strong draw for consumers this year is anything “green,” a market force that has been gaining strength with the continuing rise of energy costs, according to Gopal Ahluwalia, NAHB’s vice president of research.
“New home buyers are most influenced by greener choices that include energy-efficient features and equipment-based energy saving features,” said Ahluwalia. “They are also very interested in exterior features, such as a front porch, deck or patio in the rear, and exterior lighting. In addition, laundry rooms and dining rooms are widely considered to be essential in new homes.”
Gayle Butler, editor-in-chief of Better Homes and Gardens, confirmed that eco-friendly building is also very much on the radar of a growing number of consumers.
In a research study conducted by the magazine in January surveying more than 2,000 home enthusiasts from across the country who bought a new home in the past 10 years or plan to build one in the next 10 years, more than half of the respondents said they wanted green building and remodeling options presented to them. This number jumps to more than two out of three in the millennial age group.
Nineteen percent said that it is the responsibility of builders to use eco-friendly materials and build highly energy-efficient homes, even if it adds to the cost of the home, said Butler.
Thirty-one percent said their neighbors would buy a green home “when the cost of such homes are within 3% to 5% of conventional homes.”
Sparking Interest in a Down Market
When asked the best way for a builder to spark a buyer’s interest in today’s market, the Better Homes and Gardens survey found that 44% of the respondents prefer bonus home amenities and upgrades; 42% would like a discount on the price of a new home; 37% want the builder to buy their old home at a fair price; and 31% desire free professional decorating and landscaping advice.
“What we’ve discovered is that home continues to be our emotional center and the sweet spot of everyday life,” said Butler. “Economic uncertainty aside, we won’t stop spending, improving and dreaming when it comes to home.”
Better Homes and Gardens found that its readers prefer a home that accommodates modern lifestyles, has the flexibility to be adapted for future needs, is special “for me” and provides greener choices.
More specifically, 71% identified an all-new kitchen that looks great and is a fun place in which to work as an exciting feature to look for when shopping for a newly built home. Forty-three percent rated sufficient storage as a top priority and 41% cited a master suite “that feels like a luxurious hotel room.”
In the next five to 10 years, Butler reported, 50% of those under age 43 expect to need a home office that functions as a full-time work space, 30% of baby boomers expect an aging parent to move in and 66% of boomers expect to need guest accommodations for grown children and grandchildren.
Today’s home buyer prefers designs tailor-made for their specific needs. “Sixty-nine percent said no more cookie-cutter houses,” she said. “They want a house that has character and charm.”
Satisfaction With Kitchens and Baths
Although consumers generally prefer homes that are bigger and equipped with more amenities, said Ahluwalia, some features of new homes have now improved to the point where home buyers are relatively satisfied.
For example, while large kitchens are desirable, many consumers would be reluctant to see the kitchen expand further at the expense of other space, said Ahluwalia.
“Just over 37% of shoppers would sacrifice living space for a larger-than-average kitchen,” he said.
Home buyers are generally content with the number of bathrooms in typical new homes being built today, Ahluwalia said, and continuing a trend identified in earlier NAHB studies, more than one-third of home buyers do not think it is necessary to have a living room.
These conclusions come from a new NAHB survey of more than 2,300 recent and prospective home buyers that examined the features, amenities and layouts preferred in a new home.
Top-10 ‘Must-Have’ Features
Among the 10 features or designs most frequently rated as “essential/must have” before a consumer would consider buying a specific home, four were energy-related and two were exterior features.
A laundry room topped the list, rated essential by 55% of the survey respondents. Energy-related features in the top 10 included a high level of insulation (48%), exhaust fans (48%), Energy Star-rated windows (36%) and equipment-based energy saving measures (34%).
Exterior lighting (33%) and fenced yards (33%) were the two outdoor features that also made the top 10 list.
Of 21 different kitchen features, a walk-in pantry was rated as essential/must have or desirable by 86% of those surveyed, followed by an island work area (80%), built-in microwave (72%), drinking water filtration (69%) and special use storage (wine rack, spice drawer, pots and pans, cabinet, etc.) by 16%.
Granite/natural stone was the most popular kitchen counter material and a linen closet topped the list of bathroom features, with 89% of respondents categorizing it as essential/must have or desirable followed by an exhaust fan (88%), separate shower enclosure and water temperature control at 79% each.
The median home size of those surveyed was 1,835 square feet and the respondents said they wanted a median of 2,354 square feet in a new home. With the additional space, home shoppers expected to pay a median of $241,699, about 6% more than the $227,500 estimated median value of their current homes.
More than half (52%) of respondents prefer a master bedroom only on the second floor of a two-story home, while 16% prefer it on the first floor only and 22% would accept it on either floor.
More than two out of three respondents preferred nine-foot or higher ceilings on the first floor, and, continuing a popular trend of the last 20 years, more than 40% said they wanted the kitchen and family room to be adjacent and visually open, but with a half-wall separating the two rooms.
More than half of the respondents said they would like a minimum of four bedrooms, while 39% would accept three bedrooms.
Twenty-eight percent of those surveyed preferred at least three full bathrooms, one-third would like to have 2-1/2 bathrooms and 31% expressed satisfaction with only two bathrooms.
On the front exterior, brick was the most preferred, followed by stone, vinyl and stucco.
Remain positive even with the negative economic stories seen each night on the evening news. We live in Tulsa and still have a fantastic housing market and low mortgage rates. The above information is from the National Association of Home Builders and is very descriptive of present new housing trends. There are many great deals out there as new and existing homes continue to be listed.
For information about buying or selling a home please call Darryl Baskin or any member of his team of real estate specialists at 918.258.2600. For questions on mortgages, rates or expert advice on mortgage economics, please contact Jeff Sargent of ONB Bank & Trust Co at 918.481.6833. You can tune in to "The Future of Real Estate" show locally on KWHB TV Channel 47 (Cable 7) at 10 am Central Time each Saturday, Tulsa's Source for local real estate news and information.
Thank you and have a great week!
Jeff Sargent
President
ONB Bank & Trust Co/Residential Mortgage Division
8908 S Yale, Suite 250
Tulsa, OK 74137
Office: 918.392.6572
Cell: 918.636.0630
jeff_sargent@onbbank.com
Tuesday, March 18, 2008
why mortgage rates are still heading higher
Why mortgage rates are still heading higher
The Fed has cut interest rates again, but long-term fixed-rate mortgages may go up.
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NEW YORK (CNNMoney.com) -- The Federal Reserve cut interest rates by three-quarters of a percentage point Tuesday, but don't expect mortgage rates to go down too. In fact, home loans could be heading higher.
Consider recent history: The Fed issued an emergency cut of short-term rates in early January, and then trimmed more just a few days later - but the 30-year fixed mortgage rate has responded by bouncing up from 5.6% to 6.4%.
The Fed's main tool is control over the short-term fed funds rate, which determines what banks charge each other for overnight loans. Long-term mortgage rates are mostly tied to the 10-year Treasury yield, which is determined by bond traders worldwide.
"There is a long disconnect between the fed funds rate and fixed mortgage rates," said Keith Gumbinger, vice president of mortgage and consumer loan information publisher HSH.com.
Inflation drives long-term fixed rates. When the Fed cuts short-term rates, the intent is to lower borrowing costs for corporations so that they'll invest and hire. But this economic growth can lead to inflation.
That in turn leads bond traders to demand higher rates on their long-term bonds - and that drives up mortgage rates too.
"Mortgage rates are determined by how fearful the market is of inflation," said Gumbinger.
The Fed began a series of cuts to its key interest rate last September, taking the rate to 2.25%, from 5.25%.
ARM borrowers may get help. There is more of a connection between Fed rate cuts and short-term and adjustable rate mortgages (ARMs). In fact, homeowners with ARM loans could see lower rates from further interest rate cuts.
Adjustable rate mortgages are pegged to a number of different indexes, including the one-year Treasury yield and the international Libor, or London Interbank Offered Rate, which tend to move with the Fed funds rate.
With Tuesday's rate cut, the cumulative effect of the Fed cuts could entirely offset what would have been a significant rate reset for many homeowners.
For instance, a borrower with an adjustable rate of 4.5% could have faced a rate reset up to 7.5% before the Fed started cutting rates in September. Before the rate cuts, that homeowner would have seen an increase of $370 in monthly payments on a $200,000 loan.
But after Tuesday that rate could reset only a little higher. And for some, the rate might not go up at all - and may actually drop - according to Greg McBride of Bankrate.com. "The Fed rate cuts far are more significant to [borrowers with ARMs] in terms of staving off delinquencies on loans," he said.
Long-term rate solution. Sending long-term fixed rates back down will be more complicated than fixing inflation, because the continuing housing crisis is also exacerbating the rise in long-term fixed rates.
Generally mortgage rates are about 2 percentage points higher than the yield on the 10-year Treasury, which currently stands at 3.29%.
But the housing market is in such turmoil that rates are even higher right now, with lenders concerned that borrowers will not be able to pay back loans.
"The 30-year fixed rate mortgage should be at 5.5%, but instead it's above 6%," said McBride. "The 30-year jumbo loan [a large mortgage that is not federally guaranteed] is a full two percentage points higher than it should be."
So for long-term fixed mortgage rates to go down, the Fed must successfully make banks more willing to lend again.
The Fed has cut interest rates again, but long-term fixed-rate mortgages may go up.
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NEW YORK (CNNMoney.com) -- The Federal Reserve cut interest rates by three-quarters of a percentage point Tuesday, but don't expect mortgage rates to go down too. In fact, home loans could be heading higher.
Consider recent history: The Fed issued an emergency cut of short-term rates in early January, and then trimmed more just a few days later - but the 30-year fixed mortgage rate has responded by bouncing up from 5.6% to 6.4%.
The Fed's main tool is control over the short-term fed funds rate, which determines what banks charge each other for overnight loans. Long-term mortgage rates are mostly tied to the 10-year Treasury yield, which is determined by bond traders worldwide.
"There is a long disconnect between the fed funds rate and fixed mortgage rates," said Keith Gumbinger, vice president of mortgage and consumer loan information publisher HSH.com.
Inflation drives long-term fixed rates. When the Fed cuts short-term rates, the intent is to lower borrowing costs for corporations so that they'll invest and hire. But this economic growth can lead to inflation.
That in turn leads bond traders to demand higher rates on their long-term bonds - and that drives up mortgage rates too.
"Mortgage rates are determined by how fearful the market is of inflation," said Gumbinger.
The Fed began a series of cuts to its key interest rate last September, taking the rate to 2.25%, from 5.25%.
ARM borrowers may get help. There is more of a connection between Fed rate cuts and short-term and adjustable rate mortgages (ARMs). In fact, homeowners with ARM loans could see lower rates from further interest rate cuts.
Adjustable rate mortgages are pegged to a number of different indexes, including the one-year Treasury yield and the international Libor, or London Interbank Offered Rate, which tend to move with the Fed funds rate.
With Tuesday's rate cut, the cumulative effect of the Fed cuts could entirely offset what would have been a significant rate reset for many homeowners.
For instance, a borrower with an adjustable rate of 4.5% could have faced a rate reset up to 7.5% before the Fed started cutting rates in September. Before the rate cuts, that homeowner would have seen an increase of $370 in monthly payments on a $200,000 loan.
But after Tuesday that rate could reset only a little higher. And for some, the rate might not go up at all - and may actually drop - according to Greg McBride of Bankrate.com. "The Fed rate cuts far are more significant to [borrowers with ARMs] in terms of staving off delinquencies on loans," he said.
Long-term rate solution. Sending long-term fixed rates back down will be more complicated than fixing inflation, because the continuing housing crisis is also exacerbating the rise in long-term fixed rates.
Generally mortgage rates are about 2 percentage points higher than the yield on the 10-year Treasury, which currently stands at 3.29%.
But the housing market is in such turmoil that rates are even higher right now, with lenders concerned that borrowers will not be able to pay back loans.
"The 30-year fixed rate mortgage should be at 5.5%, but instead it's above 6%," said McBride. "The 30-year jumbo loan [a large mortgage that is not federally guaranteed] is a full two percentage points higher than it should be."
So for long-term fixed mortgage rates to go down, the Fed must successfully make banks more willing to lend again.
Thursday, March 6, 2008
INCREASE IN FHA LOAN LIMIT!!
The FHA loan limit for Oklahoma has been increased to $271,050!!!! This is a fantastic opportunity to help our local economy!
Why are mortgage rates increasing when Fed rates are decreasing
Answer Desk: Why are mortgage rates jumping?
Fed Chairman Ben Bernanke explains credit spreads to Congress
COMMENTARY
By John W. Schoen
Senior Producer
MSNBC
updated 6:27 p.m. CT, Sun., March. 2, 2008
A lot of readers have been wondering why mortgage rates are jumping — even as the Federal Reserve is busy cutting interest rates. This week, Fed Chairman Ben Bernanke makes a special guest appearance at the Answer Desk to help explain what’s going on.
Why is it, that even though Bernanke and the Fed have been lowering interest rates, ostensibly to "help the economy and the housing market", the rates on 30-year mortgages have actually risen?— Brian W., Knoxville, Tenn. One of the more touching moments of Mr. Bernanke’s two-day testimony on Capitol Hill last week came when Democratic Congressman Luis Gutierrez of Illinois quizzed the Fed Chairman on this very subject.The Congressman told the Chairman of making a call last month to his daughter, a first-time home buyer, to offer her some fatherly guidance on locking in her mortgage rate.
“I think I gave her good advice: I said, ‘Go and lock it in for as long as you can,’" Guiterrez said. “Because it was like 5-1/2 percent. I said, ‘It's time, honey.’ And then I checked The Wall Street Journal, and it's like 6.38 percent. What happened?”What happened is that mortgage rates jumped by three-quarters of a percentage point in a matter of weeks — reversing a sharp drop that began in the middle of last year.
Here’s Mr. Bernanke’s answer to Congressman Guiterrez from the hearing transcript:
“Even as the Fed has lowered interest rates, and as the general pattern of interest rates has declined, the pressures in the credit markets have caused greater and greater spread, particular for risky borrowers, like risky firms, for example,” he said. “Our easing is intended to, in some sense, you know, respond to this tightening of credit conditions. And I believe we've, you know, succeeded in doing that, but there certainly is some offset that comes from widening spreads. This is what's happening in the mortgage market.”
The Congressman moved on to another question, leaving the discussion of tightening credit and widening spreads for another time.
But, judging from our mail, the question is still on many readers’ minds these days. How can mortgage rates go up if the Fed is cutting rates? Doesn’t that mean that banks are, in effect, price gouging?
It turns out that lenders don’t control the price of long-term loans any more than consumers do. What’s happened in the past month or so is that, even as the Fed has been aggressively slashing short-term rates — and flooding the banking system with as much money it will take — the global capital markets are still very nervous about the latest headlines on rising foreclosures, a weakening economy and losses from banks and other lenders that have topped $100 billion — so far.
It turns out there are two mechanisms for setting interest rates. All the Fed can do is target the interest rate paid by U.S. banks for overnight loans among themselves. But using short-term loans to back long-term mortgages can be risky.
If National Bank takes out a short-term loan of $200,000 from the Fed and lends it to Jane HomeBuyer for 30 years, it still has to come up with $200,000 right away to pay it back. It could do so with another short-term loan, but then it has to keep doing this over and over, indefinitely “rolling it over.” If, during this process, short term rates go up, the bank loses money.
That’s why mortgage lenders making long-term loans turn to the capital markets — a global network of banks, corporations, institutions, pension funds, governments and individual investors who buy and sell money. When these players lend money for the long term, they agree to get paid back in installments, plus an interest rate that’s usually fixed for the life of the loan. As long as the rate the mortgage lender agrees to pay the investor is lower that the rate it charges its customer, the lender makes money.
Interest rates on long-term lending are based largely on the rates paid by the U.S. Treasury when it auctions off new paper to fund budget shortfalls. Because Treasuries are considered the gold standard of safety, turning over your money to other lenders is considered riskier — so the interest rates you get are a little bit higher. When an investor with money to lend in the capital markets get nervous, they demand an even higher interest rate to make up for the risk that they won’t get paid back.
During the easy-money days of the housing boom, investors showered cash at mortgage loans and asked relatively little extra “risk premium” in return. The feeling was that housing prices would continue to rise forever, and investing in mortgages – which paid higher returns than “super safe” Treasuries — was a no-brainer. Or so it seemed at the time. Now that home prices are falling, that risk premium — the “spread” between the higher rate on mortgage loans and the benchmark rate on Treasuries — has widened.
As long as that’s the case, the Fed could cut short-term rates to zero, and it wouldn’t cut the cost of long-term mortgage rates.
What is a recession? — Kathy, Bettendorf, Iowa
Mr. Bernanke was asked this one in his testimony to the Senate Banking Committee, and the answer he gave was a little clearer.
“Recessions are generally ‘called,’ so to speak, by a committee called the Business Cycle Dating Committee, which is part of the National Bureau of Economic Research, a committee of which I was once a member, by the way, which looks at a wide variety of indicators to see essentially if the economy contracted over a period of time,” Bernanke said. “And it's a somewhat subjective decision and is often made well after the fact, because of the revisions of data and so on.
“A more informal but widely used definition of recession is two consecutive quarters of negative growth. That would be an alternative that people use," he said.
Using the second definition, the economic data has yet to confirm that the U.S. economy is in recession. The widest measure of growth, the Gross Domestic Product, rose by 0.6 percent in the last three months of the year — the latest data available. That’s down sharply from the 4.9 percent growth rate in the third quarter of 2007 — but it’s still growth, not recession.
The GDP, according to the keepers of the data, measures “the output of goods and services produced by labor and property located in the United States.” But it’s an average of all regions and all industries; the housing industry is clearly in a deep recession, as are some parts of the country, especially in the industrial Midwest.
Some readers — along with some economists, Senators, investment managers and CEOs — believe we’re already entering a national recession. So the entire U.S. economy could well be in the middle of the first of those “two consecutive quarters of negative growth.” But because it can take months for the economic data to be collected and revised, we won’t know for sure that a recession has hit until at least the second half of this year at the earliest.
© 2008 MSNBC Interactive
Fed Chairman Ben Bernanke explains credit spreads to Congress
COMMENTARY
By John W. Schoen
Senior Producer
MSNBC
updated 6:27 p.m. CT, Sun., March. 2, 2008
A lot of readers have been wondering why mortgage rates are jumping — even as the Federal Reserve is busy cutting interest rates. This week, Fed Chairman Ben Bernanke makes a special guest appearance at the Answer Desk to help explain what’s going on.
Why is it, that even though Bernanke and the Fed have been lowering interest rates, ostensibly to "help the economy and the housing market", the rates on 30-year mortgages have actually risen?— Brian W., Knoxville, Tenn. One of the more touching moments of Mr. Bernanke’s two-day testimony on Capitol Hill last week came when Democratic Congressman Luis Gutierrez of Illinois quizzed the Fed Chairman on this very subject.The Congressman told the Chairman of making a call last month to his daughter, a first-time home buyer, to offer her some fatherly guidance on locking in her mortgage rate.
“I think I gave her good advice: I said, ‘Go and lock it in for as long as you can,’" Guiterrez said. “Because it was like 5-1/2 percent. I said, ‘It's time, honey.’ And then I checked The Wall Street Journal, and it's like 6.38 percent. What happened?”What happened is that mortgage rates jumped by three-quarters of a percentage point in a matter of weeks — reversing a sharp drop that began in the middle of last year.
Here’s Mr. Bernanke’s answer to Congressman Guiterrez from the hearing transcript:
“Even as the Fed has lowered interest rates, and as the general pattern of interest rates has declined, the pressures in the credit markets have caused greater and greater spread, particular for risky borrowers, like risky firms, for example,” he said. “Our easing is intended to, in some sense, you know, respond to this tightening of credit conditions. And I believe we've, you know, succeeded in doing that, but there certainly is some offset that comes from widening spreads. This is what's happening in the mortgage market.”
The Congressman moved on to another question, leaving the discussion of tightening credit and widening spreads for another time.
But, judging from our mail, the question is still on many readers’ minds these days. How can mortgage rates go up if the Fed is cutting rates? Doesn’t that mean that banks are, in effect, price gouging?
It turns out that lenders don’t control the price of long-term loans any more than consumers do. What’s happened in the past month or so is that, even as the Fed has been aggressively slashing short-term rates — and flooding the banking system with as much money it will take — the global capital markets are still very nervous about the latest headlines on rising foreclosures, a weakening economy and losses from banks and other lenders that have topped $100 billion — so far.
It turns out there are two mechanisms for setting interest rates. All the Fed can do is target the interest rate paid by U.S. banks for overnight loans among themselves. But using short-term loans to back long-term mortgages can be risky.
If National Bank takes out a short-term loan of $200,000 from the Fed and lends it to Jane HomeBuyer for 30 years, it still has to come up with $200,000 right away to pay it back. It could do so with another short-term loan, but then it has to keep doing this over and over, indefinitely “rolling it over.” If, during this process, short term rates go up, the bank loses money.
That’s why mortgage lenders making long-term loans turn to the capital markets — a global network of banks, corporations, institutions, pension funds, governments and individual investors who buy and sell money. When these players lend money for the long term, they agree to get paid back in installments, plus an interest rate that’s usually fixed for the life of the loan. As long as the rate the mortgage lender agrees to pay the investor is lower that the rate it charges its customer, the lender makes money.
Interest rates on long-term lending are based largely on the rates paid by the U.S. Treasury when it auctions off new paper to fund budget shortfalls. Because Treasuries are considered the gold standard of safety, turning over your money to other lenders is considered riskier — so the interest rates you get are a little bit higher. When an investor with money to lend in the capital markets get nervous, they demand an even higher interest rate to make up for the risk that they won’t get paid back.
During the easy-money days of the housing boom, investors showered cash at mortgage loans and asked relatively little extra “risk premium” in return. The feeling was that housing prices would continue to rise forever, and investing in mortgages – which paid higher returns than “super safe” Treasuries — was a no-brainer. Or so it seemed at the time. Now that home prices are falling, that risk premium — the “spread” between the higher rate on mortgage loans and the benchmark rate on Treasuries — has widened.
As long as that’s the case, the Fed could cut short-term rates to zero, and it wouldn’t cut the cost of long-term mortgage rates.
What is a recession? — Kathy, Bettendorf, Iowa
Mr. Bernanke was asked this one in his testimony to the Senate Banking Committee, and the answer he gave was a little clearer.
“Recessions are generally ‘called,’ so to speak, by a committee called the Business Cycle Dating Committee, which is part of the National Bureau of Economic Research, a committee of which I was once a member, by the way, which looks at a wide variety of indicators to see essentially if the economy contracted over a period of time,” Bernanke said. “And it's a somewhat subjective decision and is often made well after the fact, because of the revisions of data and so on.
“A more informal but widely used definition of recession is two consecutive quarters of negative growth. That would be an alternative that people use," he said.
Using the second definition, the economic data has yet to confirm that the U.S. economy is in recession. The widest measure of growth, the Gross Domestic Product, rose by 0.6 percent in the last three months of the year — the latest data available. That’s down sharply from the 4.9 percent growth rate in the third quarter of 2007 — but it’s still growth, not recession.
The GDP, according to the keepers of the data, measures “the output of goods and services produced by labor and property located in the United States.” But it’s an average of all regions and all industries; the housing industry is clearly in a deep recession, as are some parts of the country, especially in the industrial Midwest.
Some readers — along with some economists, Senators, investment managers and CEOs — believe we’re already entering a national recession. So the entire U.S. economy could well be in the middle of the first of those “two consecutive quarters of negative growth.” But because it can take months for the economic data to be collected and revised, we won’t know for sure that a recession has hit until at least the second half of this year at the earliest.
© 2008 MSNBC Interactive
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