What’s Ahead For Mortgage Rates This Week – February 24, 2014

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Last week's economic data supported recent reports indicating that housing markets are slowing, The National Association of Home builders/Wells Fargo Home Builders Index (HBI) dropped by 10 points to a reading of 46 for February. Home builder confidence dropped to its lowest reading in nine months,  and fell below the benchmark of 50, which indicates that more builders are pessimistic about current market conditions than not. Severe weather was blamed for the lower builder confidence reading, which fell below the expected reading of 56. Regional readings of builder confidence were also lower: Northeast: Builder confidence fell from 41 to 33…
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Smart Ways To Create Equity Within Your Home

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Home equity is the difference between what your home can sell for and what you owe on it. Generally, the longer you own your home, the more equity you build. This is money you can use before you sell your home through a home equity loan. Just keep in mind that a home equity loan is secured with your home. If you can't make the payments, you can lose your home. Use Your Home Equity In Smart Ways: Remodel Your Home - If you've wanted to add on a family room or modernize your kitchen, consider using your home's equity to fund…
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What Are The Requirements To Sell A Home Using An FHA Loan?

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Before an owner can market a property to buyers that want to use a FHA loan, he will want to familiarize himself with the FHA's standards. FHA won't insure loans on just any property. While their standards aren't as stringent as they used to be, a home needs to be in relatively good condition to qualify for FHA financing. Location And Lot To qualify for FHA financing, the property has to be located on a road or easement that lets the owner freely enter and exit. The access also has to be paved with a surface that will work all…
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What Is A Mortgage Pre-Approval?

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When you are purchasing a home, your broker may recommend you obtain a mortgage pre-approval before you find the home of your dreams. There are some benefits to being pre-approved before you find a home, but oftentimes, people confuse pre-qualifications with pre-approvals. So the question many buyers have is what exactly is a mortgage pre-approval? In a nutshell, it's when the lender provides you (the buyer) with a letter stating that your mortgage will be granted up to a specific dollar amount. What Do I Need For Pre-Approval? In order to obtain a pre-approval for your home purchase, you will…
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What’s Ahead For Mortgage Rates This Week – February 18, 2014

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Last week's economic news was dominated by the first address by the new Fed chairperson, Janet Yellen. Tuesday's news included the Jobs Openings report for December 2013, which matched November's reading of 4.0 million jobs available. This information was taken from a gauge of competition for available jobs; in December, competition for job openings fell to its lowest level in five years. Fed Chair Janet Yellen's First Address to House Janet Yellen addressed the House Financial Services Committee for the first time on Tuesday as Chair of the Federal Reserve. Ms. Yellen indicated that she expected "a great deal of…
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What To Consider When Buying A Fixer-Upper

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In your imagination it seems like a great idea – you purchase an older run-down property and you have the chance to fix it up and turn it into the home of your dreams. To Renovate, Or Not To Renovate However, the renovation project that is simply a quick montage in your imagination will actually take several months or years and thousands of dollars in real life. The concept of renovating a "fixer-upper" property is exciting, but the reality is a lot of work and investment. How can you make sure that you are making the right choice for you?…
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How A Mortgage Pre-Approval Can Help You Get A Better Deal On Your Home Purchase

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Oftentimes, when you are searching for a new home, it may seem obtaining a pre-approval for your mortgage loan is a waste of time and energy. However, there are some significant benefits to a pre-approval which should not be overlooked. In many cases, buyers can use a pre-approval for leverage when negotiating with sellers and may wind up buying a home for far less than what the listed price is. Knowing Your Limitations One significant benefit of a mortgage pre-approval is knowing exactly how much money you will be able to borrow. This means you will be looking at homes…
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Can I Have A Co-Signer For My Mortgage Loan?

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Like credit cards or car loans, some mortgages allow borrowers to have co-signers on the loan with them, enhancing their loan application. However, a co-signer on a mortgage loan doesn't have the same impact that it might on another loan. Furthermore, it poses serious drawbacks for the co-signer. What Is A Mortgage Co-Signer? A mortgage co-signer is a person that isn't an owner-occupant of the house. However, the co-signer is on the hook for the loan. Typically, a co-signer is a family member or close friend that wants to help the primary borrower qualify for a mortgage. To that end,…
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3 Important Credit Considerations Before You Apply For A Mortgage

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Before applying for a mortgage, borrowers need to build a plan for how they are going to manage their credit both going into the mortgage process and as they navigate through it. Lenders like to know that borrowers have a strong likelihood of repaying the loans they take out and, as such, look carefully at an applicant's credit. Here are three must-dos that can help an applicant turn into a home owner. Pre-Checking Credit Reports Before even starting the home loan application process, borrowers are well served to check their own credit reports and see what appears. If everything is…
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What’s Ahead For Mortgage Rates This Week – February 10, 2014

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Residential Construction Spending Up Last week's mortgage and housing-related reports began with Construction Spending for December, with a reading of 0.10 percent or a seasonally adjusted $930.5 billion. December's reading fell short of an expected increase of 0.40 percent. Spending for private sector projects rose by 1.00 percent; of this amount, residential construction spending increased by 2.60 percent and private sector spending for non-residential construction fell by -0.70 percent. Although construction spending posted a fractional gain, the good news is that construction spending is currently dominated by residential construction and that due to inclement winter weather, any gain in construction…
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