Category — Loans & Mortgages

REFINANCING CAN BE EXPENSIVE as mortgage loan origination fees, points, title insurance and closing costs can add up to thousands and tens of thousands of dollars.  This online WSJ article will help anyone refinancing today.

“PROJECT LIFELINE” announced today by the nations top six lenders servicing 50% of all mortgages provides for homeowners 90 days or more delinquent to renegotiate loans. Stock markets rise on this mortgage workout news today. Indeed.

BofA, Citigroup, Country Wide, J.P. Morgan Chase, Washington Mutual, and Wells Fargo have joined in promoting the workout plan, the “Hope Now Alliance.”  Other lenders will likely follow.  This is a smart move by lenders as 1.3 million ARM loans are expected to default in 2008, twice last years rate.

In the real estate trade this is called ‘taking the hit upfront’ which saves money and time.

Business Week assesses the impact of FHA/FNMA raising the conforming loan limit.  Although the proposed increase will not have a major impact nationally, it WILL have a major impact in high priced metro areas like Santa Clara County and LA.

THIS IS BAD NEWS FOR URBAN CALIFORNIA as Mike Farmer predicts, probably accurately, the Baby Boomers (BBs) beginning to fuel a buying boom in states like Utah, Wyoming, and other less populated states.  Baby Boomer Buying Boom… heh.

Well… maybe I can get my share of the listings as they sell out… to go to retirement heaven… and I am!

PRICE PER SQUARE FOOT has dropped only approximately $28, for $452 to $424 in San Jose. Listing inventory continues to drop.  Good signs for a May 2008 pickup in sales and a October-November bottom.  Altos Research has the numbers.