Jumbo borrowers rushed into interest-only mortgages during the housing run-up; now many face loans entering their principal-repayment period Jumbo-mortgage borrowers feasted on interest-only loans during the housing boom, enticed by low down payments and monthly outlays. But a monthly sticker shock could be ahead for these borrowers. During the peak of the housing boom, from…
After year of struggles, the housing market roared back to life in 2013. The rebound will continue in 2014, but the pace will slow. Experts say 2014 will be a year of continued growth and stabilization in the housing market with rising home prices, fewer foreclosures and greater activity among underwater homeowners. But this year’s…
Something very unusual happened with mortgage interest rates this month. The interest rate on jumbo mortgages actually fell below the interest rate of the conventional 30-year fixed-rate loan. Mortgage experts were quick to point out that this latest quirk of the housing recovery had never happened before. Conventional mortgages are 15-year and 30-year fixed-rate mortgages…
Get ready for some major renovations in the federal reverse mortgage program. On Wednesday, the U.S. Senate joined the House in passing legislation giving the Federal Housing Administration authority to alter its Home Equity Conversion Mortgage program, or (HECM), protect borrowers and help the agency avoid a federal bailout. The agency is expected to reveal…
The White House released a raft of evidence touting California’s housing recovery due to policies adopted since Obama took office in 2009, including: • As of May, 369,000 homeowners had refinanced their mortgages at lower rates through a program aimed at preventing foreclosures. • As of June, 294,000 homeowners had modified or were modifying the…
Sales of existing homes rose 6.5 percent in July and were up 17.2 percent from a year ago, though the National Association of Realtors warns rising mortgage rates could slow the pace of sales. Still, existing home sales have come in above year-ago levels for 25 straight months now. “The initial rise in interest rates…