COMPARE CLOSING LLC

  As per Fannie Mae’s Economic and Housing Outlook of this month, in the second half of 2021, consumer spending and supply chains will be greatly impacted on the US economy. Fannie Mae today in a statement announced that the full-year 2021 real GDP growth forecast had been amended due to COVID-related disruptions. The revision is also due to a weaker second-quarter GDP reading which is 6.3% this month compared to last month’s 7.0%. For the mortgage industry,  F annie Mae’s Economic and Strategic Research (ESR) Group reduced its forecast for single-family home sales because of ongoing inventory and supply chain constraints. Because the rate of new sale listings was quite low to sustain the current sales rate the current months’ supply came at the lowest ever reading at 2.6. The full-year projected figure was revised to 6.66 million from last month’s projection of 6.71 million home sales. Which is still a 3.1% increase from last year. Fannie Mae’s forecast for new construction i...

  Today August 26, 2021, according to Bankrate’s latest survey. The economy, treasury bond rates, and demand are the factors driving mortgage rates which change all the time. The average interest rate for a  home purchase  for the term of  30 years  with a fixed rate is  3.03%  with an APR of  3.26% The average interest rate for  a 20-year fixed-rate  home is  2.85%  with an APR of  3.05% The average interest rate for a  15-year fixed-rate  home purchase is  2.33%  with an APR of  2.64% The average int e rest rate for a  7/1 ARM  is  3.01%  and the APR is  3.73% The average interest rate for a  5/1 ARM  is  2.80%  and the APR is  3.91% The  30 years VA rate  is  2.69%  APR  2.88% The  30 year FHA  rate is  2.62%  APR  3.51% The  30 years fixed jumbo  loan rate is  3.05%  with an A...

  What is Combined Loan-To-Value Ratio — CLTV Ratio The ratio of all secured loans on a property to the value of a property is the  combined loan-to-value (CLTV ratio) . When more than one loan is used, the CLTV ratio is used by lenders to identify a prospective home buyer’s risk of default. To borrowers with high credit ratings the lenders are willing to lend at CLTV ratios of 80% and above. The CLTV differs from the simple loan to value ( LTV ) ratio where the LTV includes only the initial or primary mortgage in its calculation. The calculations and formula of CLTV CLTV = value  o f loan 1 +value of loan 2 + (Any further value on loan) / Total value of the property . When we divide the aggregate principal balances of all our loans by the property’s purchase price we get the calculation of the combined loan-to-value ratio. The CLTV ratio is thus inferred by the division of the sum of various things (listed below) by the appraised value of the property. The first mortgage...

  What Is an 80–10–10 mortgage? When first and second mortgages are obtained simultaneously in a loan it is called  80–10–10 mortgage . The primary mortgage lien is taken with 80% of the home’s cost hence it is an 80% loan to value ratio ( LTV ratio ), the secondary mortgage lien has a 10% loan-to-value, where the borrower makes a down payment of 10%. This arrangement is very different from the traditional single mortgage with a down payment amount of 20%. The 80–10–10 mortgage is similar to a  piggyback mortgage . Knowing More About The 80–10–10 Mortgage Anytime a prospect i ve homeowner buys a home by putting in less than the standard 20% down payment, they have to pay for private mortgage insurance ( PMI ). The PMI insurance protects the financial institution or the lender lending the money against the risk of the borrower backing out on the payment of the loan. Borrowers who want to avoid paying PMI, because it makes their monthly payment higher, regularly use 80–10–1...

  After rising continuously for 21 days, the  mortgage rates  dropped last week, but it didn’t have much effect on mortgage demand. According to the Mortgage Bankers Association’s seasonally adjusted index last week the total application volume rose 1.6% compared to the previous week. The average interest rate for  30-year fixed-rate  mortgages with conforming loan balances reduced from  3.06%  to  3.03% , with points falling from  0.34  to  0.29  for loans with a 20% down payment, this includes the origination fee. Joel Kan, an MBA econ o mist said that last week the investors were anxiously monitoring the rise in COVID-19 cases in several states which could affect economic activity resulting in falling treasury yields, this resulted in a slight decline in the mortgage rates. Refinance  applications that terribly rate sensitive, inched up by just 1% they were 3% higher during the same week last year. Many borrowers had al...

  Cyril Berdugo along with co-founder Tom Petit the co-founder and co-CEO of tech start-up Landis founded the company in 2018, and they believe they have an answer to the housing affordability crisis. Berdugo feels that the affordability crisis is not only because of the lack of supply in property. He says the end goal of their company is to move renters to homeownership. According to US Census Bureau statistics, close to 43 million and 44 million people are renters and the renter-occupied units make up 30.8% of the inventory in the second quarter of 2021. Berdu g o believes that with the help of technology and by working closely with brokers and realtors, their company can help low to middle-income individuals to progress from renting to owning their own home. The clients select a home that was bought by Landis and rents the property for up to two years meanwhile they build their credit rating and down payment. Once they are ready, they can buy the property at a predetermined pric...

  What is an Unrecaptured Section 1250 Gain? An  Internal Revenue Service  (IRS) tax provision recaptures the previously recognized depreciation into income when a gain is realized on the sale of depreciable real estate property this is called  unrecaptured section 1250 gain . As of 2019, the unrecaptured section 1250 gains are taxed with a higher limit of 25% tax rate, or less in some cases. Within Schedule D instructions, the unrecaptured section 1250 gains are calculated on a worksheet and after they are reported on the Schedule D they are carried through to the taxpayer’s 1040. The working of unrecaptured section 1250 gains All deprecia b le capital assets owned by a taxpayer for longer than one year are Section 1231 assets. All the assets belonging to  section 1245  and  section 1250 , have the umbrella of Section 1231 and the tax rate of depreciation recapture is determined by Section 1250. Section 1250 associates only to real property, like the ...

  There are growing concerns among experts as to how the new coronavirus Delta variant will impact economic activity. There’s no need to be alarmed yet feels the Fannie Mae’s Economic and Strategic Research (ESR) Group. In August the group reduced its economic growth forecast for the year 2021 from 7% in July to 6.3%. Fannie said this revision is with the expectation that the virus would disrupt consumer spending and supply chains might affect the economic activity in the second half of 2021. They have offset the decrease by upgrading the 2022 growth forecast, from 2.8% to 3.2%. The recent surge of COVID cases appears to be affecting consumer behavior, said Mark Palim, vice president and deputy chief economist at Fannie Mae. Due to ongoing inventory and supply chain shortage, single-family home sales will drop says the report from the outlook. The total sales projected for the rest of the year dropped to 6.66 million from last month’s forecasted 6.71 million this still is a 3.1% in...