By Lew Sichelman Los Angeles Times Borrowers considering inflating their income, even just a tad, checking the box to indicate they plan to live in the home when they’re not, or exaggerating their job description better think twice. Lenders are turning to websites and other tools to help nab fraudulent borrowers and perjurers looking to bilk lenders out of hundreds of thousands of dollars. Making sense of the story During the height of the market, borrowers could get away with lying … [Read more...]

By Vickie Elmer The New York Times When to refinance again Those who refinanced their mortgages a year or so ago, when interest rates averaged just below 5 percent for a 30-year fixed-rate loan, may be wondering whether it’s time to refinance yet again now that rates are at least a full percentage point lower. Making sense of the story As of Thursday, according to Freddie Mac’s weekly survey, the average rate on a 30-year loan was 3.83 percent, down from 4.63 percent a year ago, … [Read more...]

By Vickie Elmer New York Times Mortgage rates are near historic lows, but they are rising, leading some borrowers to consider locking in their rate.  When borrowers lock in their interest rate, it freezes the terms of the loan while it is being processed, potentially saving borrowers thousands of dollars over the life of the mortgage. Making sense of the story Locking in a rate may be especially important for those who are refinancing, where even a quarter of a percentage point could … [Read more...]

By Dawn Wotapka & Nick Timiraos Wall Street Journal Rising rents, coupled with slumping home prices and interest rates near record-lows, are boosting demand for homes at entry-level prices. Making sense of the story Increased buying activity from investors and second-home purchases may be factors behind the recent pickup in home sales, but real estate agents say they are fielding more calls from anxious tenants complaining about rising rents. Average apartment rents rose by … [Read more...]

By Alex Veija Mercury News Next to filing for bankruptcy protection, nothing wrecks a borrower’s chances of qualifying for a home loan like a foreclosure.  And, some lenders may not look favorably upon borrowers who were able to successfully complete a short sale either. Making sense of the story Although more than 4 million homes have been lost to foreclosure in the six years since the housing market began its descent, it’s a reality that the former owners will have to contend … [Read more...]

By Vickie Elmer The New York Times Homeowners considering finding a new job and refinancing a house may be wondering which task to take on first.  According to mortgage experts, homeowners should complete their refinancing before making any major career changes, especially if they are planning to start their own business or become an independent contractor, in which case, income may fluctuate. Making sense of the story During the refinancing process, homeowners may find that actively … [Read more...]

By Kenneth R. Harney March 11, 2012 The Federal Housing Administration (FHA) plans to impose significant restrictions on the amount of money that sellers can contribute at closing in the near future.  The FHA also will be raising its mortgage insurance premiums during the coming weeks, increasing charges for new purchases across the board. Making sense of the story One reason for the increase in fees is that over the last six years, the number of FHA loans used by buyers has … [Read more...]

By Vickie Elmer February 23, 2012 With interest rates at or near record lows, many borrows are seeing little reason to pay points when buying or refinancing a home. Some are even opting for what's know as "negative points", agreeing to a slightly higher rate to help pay closing costs. Making sense of the story Paying points enables a borrow to "buy down" the interest rate on a mortgage in exchange for an upfront fee. The trend away from points partly reflects borrower sentiments that … [Read more...]

By Chris Isidore and Jennifer Liberto February 9, 2012 On Thursday, federal and state officials announced a $26 billion foreclosure settlement with five of the largest home lenders. California is expected to receive approximately $12 billion in principal write-downs, including through short sales, over the next three years, according to the state attorney general's office. Making sense of the story The deal settles potential state charges about allegations of improper foreclosures … [Read more...]

by Vickie Elmer New York Times Fannie Mae and Freddie Mac recently extended their foreclosure forbearance programs to give short-term aid to unemployed homeowners, but housing counselors warn that these borrowers will need to look at longer-term solutions. Making sense of the story In a forbearance program, a lender agrees not to foreclose on a property and gives the borrower several months' grace from or reduction in monthly mortgage payments. The programs work best for temporary … [Read more...]