TraderWise

Great deals on Valley homes, but watch out for hidden fees, an article from azcentral.com, reports that as borrowers rush to lock in rock-bottom rates, they may encounter higher administrative fees along with bigger charges. The first fee to pay attention to is the processing fee - it should run about $500-800, according to Dean Wegner of WJ Bradley Mortgage Capital. These fees are on the rise as lenders try to compensate for the lower-rate loans.

If you're about to buy a house, you're about to face a multitude of fees. It's valuable to take some time to learn what you'll be paying for:

Points or origination fees: Each point is one percent of the mortgage value, and the more points you pay, the lower the interest rate should be. Sometimes a seller might pay the points for you -- ask your buyer broker to look into that possibility for you.

This is just a quick note to say that Lending Club appears to have reduced interest rates for borrowers by around half a percentage point. I first noticed this when I logged in to select notes for investment last week, and have seen mention of it elsewhere on the web. Rates now range from a low of 6.39% for those with the best credit to high of 21.64% for the most risky borrowers.

New Rules Can Make Getting a Mortgage Trickier, an article from Realtor Magazine Online, reports that it's becoming more common for banks to require that borrowers visit the bank and sit down with a banker when applying for a mortgage. Banks, such as JPMorgan Chase, have stopped using outside brokers - only accepting applications submitted at their own branches. This process helps banks control costs. However, the new rules slow down the application process, according to practitioners. Home-purchase loan closings can now take as long as 60 days.

New Rules Can Make Getting a Mortgage Trickier, an article from Realtor Magazine Online, reports that it's becoming more common for banks to require that borrowers visit the bank and sit down with a banker when applying for a mortgage. Banks, such as JPMorgan Chase, have stopped using outside brokers - only accepting applications submitted at their own branches. This process helps banks control costs. However, the new rules slow down the application process, according to practitioners. Home-purchase loan closings can now take as long as 60 days.

New FHA Guidelines Could Amp Condo Sales - "FHA approved" may soon become the most popular condo amenity, thanks to the new guidelines established by the FHA to take effect February 1, 2010. The guidelines addressed the two imperatives facing condominium sales: down payments and the financial integrity of condo associations. "FHA approved" used to mean a 3.5% down payment.

Major banks held in exchange traded funds (ETFs) are targeting at-risk borrowers with Citigroup Inc. (C) taking the lead. They and other banks are adopting initiatives aimed at keeping borrowers in their home and money in the markets.
Banks such as JP Morgan Chase & Co. (JPM) and Bank of...

Obama Unveils Plan to Stem Foreclosures, an article from RISMedia.com, outlines some of the highlights from the $75-billion foreclosure-prevention plan President Obama unveiled yesterday. The plan aims to provide low-cost refinancing for as many as 5 million Americans and to help delinquent or at-risk borrowers get their mortgages modified. In addition to providing financial incentives to lenders, it introduces a new insurance program to promote more mortgage modifications.

Long-Term Rates for Tenth Consecutive Week Setting Yet Another New Low, from Realty Times, reports that the 30-year fixed-rate mortgage average 5.01% with an average 0.6 point for the week ending January 8, 2009. This is the lowest rate since Freddie Mac started the Primary Mortgage Market Survey in 1971. The Federal Reserve's recent purchases of mortgage-backed securities issued by Freddie Mac, Fannie Mae and Ginnie Mae is part of the reason why rates have reached this new low.