Mortgage News

Posted in:VA Loans and tagged: Rocket Loan Depot Freedom
Posted by Anne James on April 3rd, 2018 7:11 AM
Posted by Anne James on March 20th, 2018 7:20 AM
Mortgage Rates Lowest In Weeks

Mortgage rates fell today following a tame read on inflation as well as the announcement of Rex Tillerson's departure from the White House.  The Consumer Price Index--the most widely followed economic report on consumer-level inflation--showed prices moving up 0.2% in February (rounded up from 0.1501%).  The median forecast called for a 0.2% increase.  

When inflation is falling (or rising more slowly), it tends to benefit bond markets, thus pushing rates lower.  Given that the inflation data was fairly close to forecasts, it didn't have any sort of extreme impact today, but it added some downward pressure on rates.  The Tillerson news came out a few minutes later.  Markets reacted as they typically do to news that creates uncertainty with stocks and rates moving lower together.  But since Tillerson's departure wasn't a huge surprise, it too failed to cause a profound move lower in rates.  

Even then, we have to separate the intraday rate movement that exists in bond markets from the 1-3x per day rate sheet changes from mortgage lenders.  As of this afternoon, most lenders are still on their first rate sheet of the day.  Even so, those rates had improved enough to make them the lowest in more than a week.  That said, many borrowers will still see the same NOTE rates as yesterday with the improvement coming in the form of lower upfront costs or a higher lender credit (aka, lower EFFECTIVE rate, not lower NOTE rate).



Posted by Anne James on March 13th, 2018 4:42 PM

Mortgage rates moved lower today--somewhat significantly relative to recent examples--ultimately hitting the best levels in more than a week for most lenders.  Trump's tariff announcement served as a catalyst for market movement in both stocks and bonds (which underlie mortgage rates).  Investors currently view the proposed tariffs as something that would do more harm than good for the overall economy.  Economic growth generally corresponds with rising rates, so anything that calls it into question can have the opposite effect.

It's too early, at the point, to know if the tariff-related news will be a big deal for rates apart from today's headline shock value.  What we do know is that rates are officially putting up their best fight so far this year when it comes to pushing back against the dominant trend (the one that's carried average mortgage rates more than half a point higher).  While many lenders aren't in much better territory than Monday morning, lenders who released updated rate sheets this afternoon are in the best shape in more than 2 weeks.  We haven't been able to say "2 week lows" since early December.

Loan Originator Perspective

Bond markets posted modest gains today, but still remained below Monday's levels.  We may be establishing a new range here, which would certainly beat rates continuing higher.  I'm not ready to contemplate floating deals yet, since there's no apparent motivation for yields to fall, but at least we're not posting daily sell-offs either. Ted Rood, Senior Originator

We might actually have 2 green days in a row in the bond market.  It has been a while.  Bonds have still not broken any important levels, so i continue to favor locking.  I would wait until as late as possible as reprices for the better are a possibility. -Victor Burek, Churchill Mortgage

Today's Most Prevalent Rates

  • 30YR FIXED - 4.5-4.625%
  • FHA/VA - 4.375%
  • 15 YEAR FIXED - 3.875%
  • 5 YEAR ARMS -  3.5-3.75% depending on the lender
Posted by Anne James on March 2nd, 2018 10:13 AM
Credit Score Ranges: What do they Mean?

If you’ve recently been contacted by a debt collector for the first time, or you’re worried that a collector will contact you soon because you’ve fallen behind on your bills, you probably have many questions and are understandably nervous about the process.

This article will give you an introduction to the debt-collection business so you can understand the collection agency’s perspective. This should give you a better idea of what motivates debt collectors and what their incentives are, which can help smooth your interactions with them and make the process less stressful.

The Business of Debt Collection

Debt collectors often work for debt-collection agencies, though some operate independently and some are also attorneys. Sometimes these agencies act as middlemen, collecting customers’ delinquent debts – debts that are at least 60 days past due –  and remitting them to the original creditor. The creditor pays the collector a substantial percentage, typically 25% to 45%, of the amount collected. Debt collection agencies collect delinquent debts of all types: credit card debt, medical debt, automobile loan debt, personal loan debt, business debt, student loan debt and even unpaid utility and cell phone bills.

Collection agencies tend to specialize in types of debt. For example, an agency might only collect delinquent debts of at least $200 that are less than two years old. A reputable agency will also limit its work to collecting debts that are within the statute of limitations, which varies by state.

For difficult-to-collect debts, some collection agencies also negotiate settlements with consumers for less than the consumer owes. Debt collectors may also refer cases to lawyers who file lawsuits against customers who have refused to pay the collection agency. 

Agencies That Buy Debt

When the original creditor has determined that it isn’t likely to collect, it will cut its losses by selling that debt to a debt buyer. Creditors package together numerous accounts with similar features and sell them as group. Debt buyers can choose from packages of accounts that are not that old and that no other collector has worked on yet, accounts that are quite old and that other collectors have failed to collect on, and accounts that fall somewhere in between. 

Debt buyers often purchase these packages through a bidding process, paying on average 4 cents for every $1 of debt face value. In other words, a debt buyer might pay $40 to purchase a delinquent account where the balance owed is $1,000. The older the debt, the less it costs, since it is less likely to be collectable.

The type of debt also influences the price; mortgage debt is worth more, while utility debt is worth less. Debt buyers keep everything they collect; because they have purchased the debt from the original creditor, they don’t send any of the amount collected to that creditor. 

Debt collectors get paid when they recover a delinquent debt; the more they recover, the more they earn. Old debt that is past the statute of limitations or is otherwise deemed uncollectable is bought for pennies on the dollar, making collectors big profits.

What Debt Collectors Do

Debt collectors use letters and phone calls to contact delinquent borrowers and try to convince them to repay what they owe. When debt collectors can’t reach the debtor with the contact information provided by the original creditor, they look further, using computer software and private investigators. They can also conduct searches for a debtor’s assets, such as bank and brokerage accounts, to determine a debtor’s ability to repay. Collectors may report delinquent debts to credit bureaus to encourage consumers to pay, since delinquent debts can do serious damage to a consumer’s credit score

A debt collector has to rely on the debtor to pay and cannot take a paycheck or reach into a bank account, even if the routing and account numbers are known, unless a judgment is obtained, meaning that the court orders them to repay a certain amount to a particular creditor. To do this, a collection agency must take the debtor to court before the statute of limitations runs out and win a judgment against him or her. This judgment allows a collector to begin garnishing wages and bank accounts, but the collector must still contact the debtor's employer and bank to request the money.

Debt collectors also contact delinquent borrowers who have already had a judgment against them,  Even when a creditor wins a judgment, it can be difficult to collect the money. Along with placing levies on bank accounts or motor vehicles, debt collectors can try placing a lien on property or forcing the sale of an asset.

How Reputable Collectors Operate

Debt collectors have a bad reputation for harassing consumers. More consumers complain to the Federal Trade Commission about debt collectors than about any other industry. The Fair Debt Collection Practices Act limits how collection agencies can collect a debt in order to keep them from being abusive, unfair and deceptive, and there are debt collectors who are careful not to violate consumer protection laws. Here’s what you can expect from a reputable collector.

In contacts with debtors, a collector who behaves properly will be fair, respectful, honest and law-abiding. After you make a written request for verification of a debt you've been contacted about, the collector will suspend collection activities and send you a written notice of the amount owed, the company you owe it to and how to pay it. If the collector can’t verify the debt, the company will stop trying to collect from you. It will also tell the credit bureaus that the item is disputed or request that it be removed from your credit report. If the collector is working as a middleman for a creditor and doesn’t own your debt, it will notify the creditor that it has stopped trying to collect because it couldn’t verify the debt. 

Collectors must also follow certain time limits, such as not reporting a debt that is more than seven years old and sending a debt validation letter within five days of first contact with the debtor.

Reputable debt collectors will try to obtain accurate and complete records so they don’t pursue people who don’t really owe money. If you tell them the debt was caused by identity theft, they will make a reasonable effort to verify your claim. They also won’t try to sue you for debts that are beyond the statute of limitations. They will not harass or threaten you or treat you differently because of your race, sex, age or other characteristics. They will not publicize any debt you owe or try to deceive you in order to collect a debt, nor will they pretend to be law enforcement agents or threaten you with arrest. They also won’t contact you before 8:00 a.m. or after 9:00 p.m. without your permission to do so.

To learn more about what debt collectors are not allowed to try on you, read 5 Things Debt Collectors Are Forbidden To Do.

The Bottom Line

Debt collection is a legitimate business, and if a debt collector contacts you, it’s not necessarily the beginning of an abusive relationship. Many  collectors are honest people who are just trying to do their jobs and will work with you to create a plan to help you repay your debt, whether that means a payment in full, a series of monthly payments or even a reduced settlement.

You should of course put up your guard  when a collector contacts you, and you should know your rights and understand what debt collectors are and aren't allowed to do. But if you know a bit about how the business works, you might be able to resolve your delinquent debt amicably.

One cautionary note: Debts fall under a statute of limitations. If you think this could be an issue in your situation, do not admit to the debt or discuss any settlement without legal advice; taking even the smallest step could void the statute of limitations and restart the clock. See Do I still owe debt collectors for a debt that's past the statute of limitations for my state?



Read more: How the Debt Collection Agency Business Works | Investopedia https://www.investopedia.com/articles/personal-finance/121514/how-debt-collection-agency-business-works.asp#ixzz54MajV23U
Follow us: Investopedia on Facebook

Posted by Anne James on January 16th, 2018 7:54 AM
Credit Score Ranges: What do they Mean?

If you’ve recently been contacted by a debt collector for the first time, or you’re worried that a collector will contact you soon because you’ve fallen behind on your bills, you probably have many questions and are understandably nervous about the process.

This article will give you an introduction to the debt-collection business so you can understand the collection agency’s perspective. This should give you a better idea of what motivates debt collectors and what their incentives are, which can help smooth your interactions with them and make the process less stressful.

The Business of Debt Collection

Debt collectors often work for debt-collection agencies, though some operate independently and some are also attorneys. Sometimes these agencies act as middlemen, collecting customers’ delinquent debts – debts that are at least 60 days past due –  and remitting them to the original creditor. The creditor pays the collector a substantial percentage, typically 25% to 45%, of the amount collected. Debt collection agencies collect delinquent debts of all types: credit card debt, medical debt, automobile loan debt, personal loan debt, business debt, student loan debt and even unpaid utility and cell phone bills.

Collection agencies tend to specialize in types of debt. For example, an agency might only collect delinquent debts of at least $200 that are less than two years old. A reputable agency will also limit its work to collecting debts that are within the statute of limitations, which varies by state.

For difficult-to-collect debts, some collection agencies also negotiate settlements with consumers for less than the consumer owes. Debt collectors may also refer cases to lawyers who file lawsuits against customers who have refused to pay the collection agency. 

Agencies That Buy Debt

When the original creditor has determined that it isn’t likely to collect, it will cut its losses by selling that debt to a debt buyer. Creditors package together numerous accounts with similar features and sell them as group. Debt buyers can choose from packages of accounts that are not that old and that no other collector has worked on yet, accounts that are quite old and that other collectors have failed to collect on, and accounts that fall somewhere in between. 

Debt buyers often purchase these packages through a bidding process, paying on average 4 cents for every $1 of debt face value. In other words, a debt buyer might pay $40 to purchase a delinquent account where the balance owed is $1,000. The older the debt, the less it costs, since it is less likely to be collectable.

The type of debt also influences the price; mortgage debt is worth more, while utility debt is worth less. Debt buyers keep everything they collect; because they have purchased the debt from the original creditor, they don’t send any of the amount collected to that creditor. 

Debt collectors get paid when they recover a delinquent debt; the more they recover, the more they earn. Old debt that is past the statute of limitations or is otherwise deemed uncollectable is bought for pennies on the dollar, making collectors big profits.

What Debt Collectors Do

Debt collectors use letters and phone calls to contact delinquent borrowers and try to convince them to repay what they owe. When debt collectors can’t reach the debtor with the contact information provided by the original creditor, they look further, using computer software and private investigators. They can also conduct searches for a debtor’s assets, such as bank and brokerage accounts, to determine a debtor’s ability to repay. Collectors may report delinquent debts to credit bureaus to encourage consumers to pay, since delinquent debts can do serious damage to a consumer’s credit score

A debt collector has to rely on the debtor to pay and cannot take a paycheck or reach into a bank account, even if the routing and account numbers are known, unless a judgment is obtained, meaning that the court orders them to repay a certain amount to a particular creditor. To do this, a collection agency must take the debtor to court before the statute of limitations runs out and win a judgment against him or her. This judgment allows a collector to begin garnishing wages and bank accounts, but the collector must still contact the debtor's employer and bank to request the money.

Debt collectors also contact delinquent borrowers who have already had a judgment against them,  Even when a creditor wins a judgment, it can be difficult to collect the money. Along with placing levies on bank accounts or motor vehicles, debt collectors can try placing a lien on property or forcing the sale of an asset.

How Reputable Collectors Operate

Debt collectors have a bad reputation for harassing consumers. More consumers complain to the Federal Trade Commission about debt collectors than about any other industry. The Fair Debt Collection Practices Act limits how collection agencies can collect a debt in order to keep them from being abusive, unfair and deceptive, and there are debt collectors who are careful not to violate consumer protection laws. Here’s what you can expect from a reputable collector.

In contacts with debtors, a collector who behaves properly will be fair, respectful, honest and law-abiding. After you make a written request for verification of a debt you've been contacted about, the collector will suspend collection activities and send you a written notice of the amount owed, the company you owe it to and how to pay it. If the collector can’t verify the debt, the company will stop trying to collect from you. It will also tell the credit bureaus that the item is disputed or request that it be removed from your credit report. If the collector is working as a middleman for a creditor and doesn’t own your debt, it will notify the creditor that it has stopped trying to collect because it couldn’t verify the debt. 

Collectors must also follow certain time limits, such as not reporting a debt that is more than seven years old and sending a debt validation letter within five days of first contact with the debtor.

Reputable debt collectors will try to obtain accurate and complete records so they don’t pursue people who don’t really owe money. If you tell them the debt was caused by identity theft, they will make a reasonable effort to verify your claim. They also won’t try to sue you for debts that are beyond the statute of limitations. They will not harass or threaten you or treat you differently because of your race, sex, age or other characteristics. They will not publicize any debt you owe or try to deceive you in order to collect a debt, nor will they pretend to be law enforcement agents or threaten you with arrest. They also won’t contact you before 8:00 a.m. or after 9:00 p.m. without your permission to do so.

To learn more about what debt collectors are not allowed to try on you, read 5 Things Debt Collectors Are Forbidden To Do.

The Bottom Line

Debt collection is a legitimate business, and if a debt collector contacts you, it’s not necessarily the beginning of an abusive relationship. Many  collectors are honest people who are just trying to do their jobs and will work with you to create a plan to help you repay your debt, whether that means a payment in full, a series of monthly payments or even a reduced settlement.

You should of course put up your guard  when a collector contacts you, and you should know your rights and understand what debt collectors are and aren't allowed to do. But if you know a bit about how the business works, you might be able to resolve your delinquent debt amicably.

One cautionary note: Debts fall under a statute of limitations. If you think this could be an issue in your situation, do not admit to the debt or discuss any settlement without legal advice; taking even the smallest step could void the statute of limitations and restart the clock. See Do I still owe debt collectors for a debt that's past the statute of limitations for my state?



Read more: How the Debt Collection Agency Business Works | Investopedia https://www.investopedia.com/articles/personal-finance/121514/how-debt-collection-agency-business-works.asp#ixzz54MajV23U
Follow us: Investopedia on Facebook

Posted by Anne James on January 16th, 2018 7:53 AM
Rent vs Own Tool Your Neighborhood

Did you know that the concentration of renters in a neighborhood can impact property values? Generally, a low concentration of renters and a higher percentage of homeowers is best for rising values.

Posted by Anne James on November 14th, 2017 8:55 AM
Posted by Anne James on November 7th, 2017 11:38 AM

Adjustable-rate mortgages (ARMs) allow borrowers to pay lower interest rates on their loan for a set period, after which the rates get changed. The 7/1 ARM means that for seven years the borrower’s interest rate will remain fixed. That’s a clear advantage the 7/1 ARM has over other ARMs with shorter fixed-rate periods.

Get a good rate on your mortgage using Bankrate’s mortgage calculators.

However, they also run the risk of potentially higher mortgage payments at the end of the seven years. Whether the rates increase or decrease is determined by

  • Indexes: ARMs are tied to an index of interest rates like the London Interbank Offered Rate (Libor).
  • Margins: The margin, established at the time of the loan approval, remains fixed for the entire loan. For example, a margin could be set at 3 percent, meaning the interest rate charged could be as much as 3 percent higher than the index.
  • Caps: ARMs usually have a lifetime cap that establishes a maximum interest rate and a periodic cap that sets a limit to the amount the interest rate can change in any one adjustment period.

In years when interest rates are low, ARMs are less popular than fixed-rate mortgages. When the opposite is true, borrowers prefer to risk a higher rate in the future in exchange for reduced interest payments now.

Posted by Anne James on October 17th, 2017 1:39 PM

VA Loans: Are they a Seller's concern or old Fish Story passed down from Realtor-to-Realtor? Listen up, homeowners and Realtors alike! VA Offers and loans are more likely to close successfully and on time than any other offer, save 'All Cash.' Here are 5 Reasons VA Loans are the Best Loan for both Veteran and Seller:
1) Sellers do NOT have to pay points, closing costs (the termite report and repairs being only exception ) or other fees. Rates are so low on VA loans compared to Conventional and FHA; it's easier for the Veteran to qualify! There's no Mortgage Insurance on VA Loans either.
2) There's NO downpayment (zero down to $636,150 loan amount- and low downpayment up to $1 Million), The Debt Ratio  is allowed to go up to 59% versus 49.99% on conventional and 54.99% on FHA. No Reserves are required.
3) Lenders love VA loans as Realtors don't have to ask for closing costs in a tight seller's market - the rate is so low that closing costs can be covered by a slightly higher interest rate and many Veterans get into homes for less than $1,000 .
4) Credit Scores are relaxed with no higher rate for 670 FICO and down to 600 FICO's are accepted. Reliance Mortgage Service will work with Veterans who have credit derogatories always and bring them up to lender requirements or higher. Try us.
5) Veterans can use their VA Entitlement more than once, twice or more as long as their current VA Loan is paid off. Keeping current home as a rental? Reliance Mortgage Service will refinance your loan to conventional and usually at a much lower payment. Call us today and get an estimate on either purchase or refinance. Realtors are welcome to call with questions as well.










Posted by Anne James on September 12th, 2017 12:28 PM

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