And now a word from Jim Brown Of First Investors (Belmont)

Mortgage rates continue to stay in the 6.50% range. The 10 year bond has dropped
but the rates do not appear to be following. The good news is that many lenders no longer have declining markets in Massachusetts. The 97% single family program is now a program we can use. The banks continue to tighten credit but the activity in the market has increased. I don't think the increase in rates has hurt the market. There is some MHFA funding available for first time and low income borrowers with the rate being about 6.00%.

Just wanted to tell everyone to keep the community homebuyer program in minds which provides a lower downpayment and easier loan qualifications. We have a program

For:
1 Unit 97% LTV
2 Unit 95% LTV
3 Unit 90% LTV
4 Unit 90% LTV

The max combined income is $108,000.00. This is a great program for first time homebuyers.
CONFORMING
30 YEAR FIXED
6.500% 0 Point
6.000 % 2 Points
15 YEAR FIXED
6.125% 0 Point
5.625% 2 Points
Conventional 5/1 ARM
6.375% 0 Points
5.500% 2 Points
JUMBO
30 YEAR FIXED
6.750% 0 Points
7/1 YEAR ARM
6.375% 0 Points
5.875% 1 Point
5/1 YEAR ARM

6.250% 0 Points
5.750% 2 Points

Jim Brown
President
First Investors Mortgage Inc.
MB0063
24 Trapelo Road
617.484.8383

And Now a Word from Jim Brown of First Investors (Belmont)

Mortgage rates have remained relatively stable with a slight bump yesterday due to the increase in the T-Bills. Jumbo pricing has gotten alot better so that should
bring the Jumbo market back into play somewhat. Keep an eye on the adjustables as there is starting to be a big spread on the conventional adjustables versus the fixed
rates. Yesterday we had 5.25% with no points on a 5/1 year ARM. These adjustments
should make purchasing more attractive to borrowers. Be aware of the lenders who are adjusting for declining markets as we have lenders who are going solely on DU
conditions which does not require an adjustment. We can do 95% financing on purchases for singles even in a declining market.

Just wanted to tell everyone to keep the community homebuyer program in minds which
provides a lower downpayment and easier loan qualifications. We have a program
For:
1 Unit 97% LTV
2 Unit 97% LTV
3 Unit 95% LTV
4 Unit 90% LTV
The max combined income is $108,000.00. This is a great program for first time homebuyers.
CONFORMING
30 YEAR FIXED
6.000% 0 Point
5.500 % 2 Points
15 YEAR FIXED
5.625% 0 Point
5.125% 2 Points

Conventional 5/1 ARM
5.375% 0 Points
4.500% 2 Points
JUMBO
30 YEAR FIXED
6.375% 0 Points
7/1 YEAR ARM
5.875% 0 Points
5.375% 1 Point
5/1 YEAR ARM
5.625% 0 Points
5.125% 2 Points
GIVE JIM a call with questions, scenerios, or pre-approvals
Jim Brown
President
First Investors Mortgage Inc.
MB0063
24 Trapelo Road
Belmont, Ma. 02478
Work # 617-484-8383
Fax# 617-489-4976
Email: jimbrown@firstinvestorsmortgage.net

JuMMMMBOOHHH

It looks like President Bush will sign the stimulus package Wed. It’s unofficial, but it looks like the new Jumbo loan limits for the area (based on 125% of the median home price per county—we think…)
The unofficial numbers:
Middlesex, Suffolk, Norfolk counties will go to $518,375
Barnstable will go to 512,500
Nantucket & Dukes Counties will go to 477,355
All others to stay the same—i.e. $417,000

Declining Markets

Once again, if you need to know if a town is in a "Declining Market", email me at al.gutterman@commonmoves.com.


If you want to vent, one way or the other, feel free to post a comment down below.

If you are looking to buy or sell a home in my area, call me 617.470.8085.

And by the way...I am never to busy for your referrals.

Puppy Love

First off, if you need to know if your home, or the home in which you may be interested is in a designated "DECLINING MARKET", email me al.gutterman@commonmoves.com, or call me at 617.470.8085.

Now let us move on, shall we?

I am supposed to show the home at 11:30. I get to the home. The owner, a shy sort who seems not to want to be noticed, is still there.

Pray be, I ask her, why have you not gone for a stroll some other fashion of repast (as is your wont) while I am here to show the home? Well, actually, those were not my exact words, but I have been reading some Jane Austen, these days, and the impact lingers.

"Well," she replies, I could not just leave you alone with them. I mean, they are coming right now."

"I know," I say, "I think they are good buyers and..."

"No no no, " she interjects, rather forcefully, "Not them, I mean THEM," and she points to the kitchen.

Readers, mind you, I have oft said I've "seen everything" and I suspected she was referring to ghosts, but in this case, I must admit, I've seen something NEW...never seen before.

"Four of them already," she said, "More coming by the looks of her. Come."

Readers, have you guessed? Her dog, it seems, no longer "virgo intacta" was delivering her issue on a pile of newspapers in a box in the kitchen. As the kidney bean lumps of skin emerged and slipped about, I thought about the buyers coming in a few minutes, sensed the oozes and odors of "Mutt-making" and ruminated...

Yes -- my game plan -- well lived in house, full of life, a free puppy with every offer...

Declining Markets and Fannie Mae

I am being swarmed with this up top. Email me if you want to know if your property is in a declining market in Massachusetts. I WILL get back to you the same day, but be patient. For an explanation of decling markets, see the post of January 16 or read below.
Al.
al.gutterman@commonmoves.com


Maximum Financing in Declining Markets:
Fannie Mae Announcement 07-22

Marianne E. Sullivan, Sr. VP of Fannie Mae's Single-Family Credit Polity and Risk Management division, issued a Selling Guide Announcement 07-22 on December 5, 2007.

"Current home price trends indicate that home values continue to decline in many markets across the country. As a result, and based on our continued monitoring of loan performance, Fannie Mae is reinstating a policy to restrict the maximum loan-to- value (LTV) ratio and combined loan-to-value (CLTV) ratio for properties located within a declining market to five percentage points less than the maximum permitted for the selected mortgage product."
Effective November 12, 2007 for new loans, when a property is identified as being located in a declining market, a 5% LTV/CLTV reduction is required from the maximum financing allowed per the applicable loan program. In addition, the appraiser must provide three comparable sales that have closed within the last six months to support the property value. This policy update is applicable to all conventional conforming and jumbo loans, including Home Equity Lines of Credit and Closed End Seconds only. FHA and VA products are excluded from this new policy.
Many Massachusetts communities have been included
in this policy effective 1-11- 2008

Example for how LTV may be impacted:

Example 1 - Purchase transaction of a primary residence at a 100% LTV/CLTV, which is also at the maximum allowable LTV for the selected product. If the subject property is identified as being located in a declining market, the maximum financing would be restricted to a 95% LTV/CLTV.

Example 2 - Purchase transaction of an investment property at a 72% LTV and selected product allows for a maximum LTV/CLTV of 75%. If the subject property is identified as being located in a declining market, the maximum financing would be restricted to a 70% LTV/CLTV.
The subject property will be identified as being located in a declining market if any of the following criteria apply:
· The Appraiser identifies the property as being located in a declining market.
· The automated underwriting system identifies the property as being located in an area of declining home values.
· The property is identified as being located in a declining market via the Declining Market Indicator tool internally at Century 21 Mortgage.
CALL ME FOR INFORMATION ON ANY PARTICULAR TOWN 617.470.8085 or email me al.gutterman@commonmoves.com

DECLINING MARKETs AND FANNIE MAE

Call me at 617.470.8085 to see if YOU are in a decling market

A NEW YEAR AND A NEW MARKET
Maximum Financing in Declining Markets:
Fannie Mae Announcement 07-22

Marianne E. Sullivan, Sr. VP of Fannie Mae's Single-Family Credit Polity and Risk Management division, issued a Selling Guide Announcement 07-22 on December 5, 2007.

"Current home price trends indicate that home values continue to decline in many markets across the country. As a result, and based on our continued monitoring of loan performance, Fannie Mae is reinstating a policy to restrict the maximum loan-to- value (LTV) ratio and combined loan-to-value (CLTV) ratio for properties located within a declining market to five percentage points less than the maximum permitted for the selected mortgage product."
Effective November 12, 2007 for new loans, when a property is identified as being located in a declining market, a 5% LTV/CLTV reduction is required from the maximum financing allowed per the applicable loan program. In addition, the appraiser must provide three comparable sales that have closed within the last six months to support the property value. This policy update is applicable to all conventional conforming and jumbo loans, including Home Equity Lines of Credit and Closed End Seconds only. FHA and VA products are excluded from this new policy.
Many Massachusetts communities have been included
in this policy effective 1-11- 2008

Example for how LTV may be impacted:

Example 1 - Purchase transaction of a primary residence at a 100% LTV/CLTV, which is also at the maximum allowable LTV for the selected product. If the subject property is identified as being located in a declining market, the maximum financing would be restricted to a 95% LTV/CLTV.

Example 2 - Purchase transaction of an investment property at a 72% LTV and selected product allows for a maximum LTV/CLTV of 75%. If the subject property is identified as being located in a declining market, the maximum financing would be restricted to a 70% LTV/CLTV.
The subject property will be identified as being located in a declining market if any of the following criteria apply:
· The Appraiser identifies the property as being located in a declining market.
· The automated underwriting system identifies the property as being located in an area of declining home values.
· The property is identified as being located in a declining market via the Declining Market Indicator tool internally at Century 21 Mortgage.
CALL ME FOR INFORMATION ON ANY PARTICULAR TOWN 617.470.8085 or email me al.gutterman@commonmoves.com