The Truth About Mortgage.com

Why is the APR Lower Than the Mortgage Rate?

scot184 — Tue, 09 Feb 2010 19:38:49 +0000

If you’ve been shopping mortgage rates lately, you may be wondering why the APR is sometimes lower than the advertised interest rate. The APR, or annual percentage rate, is the interest rate of the loan factoring in specified closing costs like the loan origination fee, processing fees, mortgage insurance, and so forth. That said, if a mortgage [...]

Now Get Rewarded for Simply Paying the Mortgage

scot184 — Mon, 08 Feb 2010 18:25:04 +0000

A New Jersey-based company has launched an incentive-based program to address the risk of strategic default, which is surely on the rise as a result of sinking property values. Loan Value Group, LLC’s “Responsible Homeowner Reward” (RH Reward) program creates incentives for homeowners to stay current on payments without changing the terms of the loan or [...]

Mortgage Bankers Association Sells Headquarters at Huge Loss

scot184 — Sat, 06 Feb 2010 20:35:20 +0000

The Mortgage Bankers Association sold its Washington D.C. Headquarters at a multi-million dollar loss to commercial real estate firm CoStar Group, according to the WSJ. The bankers group apparently parted with the property for $41.3 million, well below the reported $79 million paid back in 2007, while it was still under construction. The sprawling 170,000-square foot, 10-story [...]

Upfront Fees on Loan Modifications Set to be Banned Nationwide

scot184 — Fri, 05 Feb 2010 19:39:21 +0000

The FTC has proposed a new rule that would ban upfront fees for loan modification services nationwide. Per the rule, companies offering such services would have to wait until after receiving a documented offer from the loan servicer or mortgage lender to collect payment. “Homeowners facing foreclosure or struggling to make mortgage payments shouldn’t have to contend [...]

Million Dollar Home Sales Decline for Fourth Straight Year in California

scot184 — Thu, 04 Feb 2010 18:48:25 +0000

The number of million-dollar plus homes sold in the Golden State fell for the fourth consecutive year, according to DataQuick. Just 18,621 million-dollar plus homes sold in California last year, down 23.8 percent from the 24,436 sold in the state during 2008. Such sales peaked in 2005, when a staggering 54,773 were sold; last year’s total was [...]

Mortgage Rates Back Over Five Percent

scot184 — Thu, 04 Feb 2010 17:35:00 +0000

The 30-year fixed climbed back above five percent this week, rising two basis points to 5.01 percent, according to mortgage financier Freddie Mac. A year ago, the popular mortgage program averaged 5.25 percent, meaning interest rates have been attractive for a long, long time now. “Mortgage rates remained relatively stable for a second week amid news of [...]

What to Pay First? Mortgage or Credit Card?

scot184 — Wed, 03 Feb 2010 19:42:46 +0000

Well, an increasing number of consumers are making sure the plastic is paid before the mortgage, bucking the historical trend and adding to strategic default worries nationwide, according to credit bureau TransUnion. In the first quarter of 2008, the percentage of consumers current on credit cards but delinquent on mortgages first surpassed the percentage of consumers [...]

ResCap to Cut More Than 300 Jobs

scot184 — Wed, 03 Feb 2010 18:44:22 +0000

Residential Capital (ResCap), the money-burning real estate finance arm of GMAC, is expected to slash more than 300 jobs at locations in Costa Mesa, California and Charlotte, North Carolina. The Charlotte office will be shut down entirely, while the Costa Mesa office will retain roughly 30 people, according to a company spokeswoman. Many of the job losses [...]

Mortgage Demand Heats Up

scot184 — Wed, 03 Feb 2010 17:46:31 +0000

Mortgage demand jumped 21 percent on a seasonally adjusted basis (23.5% unadjusted) during the week ending January 29 compared to one week earlier, according to the Mortgage Bankers Association. “Mortgage application volume rebounded last week, returning the purchase and refinance indexes to levels from mid-December,” said Michael Fratantoni, MBA’s Vice President of Research and Economics, in [...]

More Than Nine Percent of FHA Loans Seriously Delinquent

scot184 — Tue, 02 Feb 2010 18:19:39 +0000

Roughly 9.1 percent of borrowers with FHA loans were seriously delinquent (at least three months behind) as of December, according to a report from the Washington Post. That’s up from 6.5 percent a year ago, thanks mainly to FHA loans originated in 2007 and 2008 going sour, putting increased pressure on the FHA’s depleted insurance fund. But [...]