Mortgage News
Ascot Mortgage Service LLC

Your Best Mortgage Professionals In Dallas
As Published In
D Magazine (Dallas/Fort Worth), July 2013

Your Best Mortgage Professionals In Dallas

HUD Buying Your Home Handbook:

Consumers Handbook on Adjustable Rate Mortgages (ARM):

Low credit scores not mattering!
Are you ready to
be a homeowner?

For mor information please download the HUD's Settlement Cast Booklet.
*Shopping for Your Home Loan"

in America.

Get Into A Home Of Your Own

Even if you have limited savings, our low-down-payment programs can help you become a homeowner.

Refinance Mortgage Rates Are Low!

Quick! While mortgage rates are low. NOW is the time to look into refinancing your home.

FASB Ruling Hits the Mark

- Bonnie Raitt. Better believe that last week's news gave us plenty to talk about.and even a few things to smile about. Here are the highlights.

Recent News

Get Into A Home Of Your Own

Even if you have limited savings, our low-down-payment programs can help you become a homeowner.

Don't be concerned about draining your savings because these programs require less cash out-of-pocket. And be sure to find out more about the Downpayment Assistance Programs available to you.

With low-down-payment options, the advantage of financing your closing costs, plus our flexible credit terms, homeownership may be closer than you imagined. Whatever your home financing needs may be, I'm ready to help you find the solution that's right for you.

Features That Put A Home Well Within Your Reach

  • Less Cash Out-of-pocket -no need to drain your savings with low- down-payment options, plus gift funds are allowed and closing costs can be financed
  • Downpayment Assistance Programs - provide funding to help with down payment and closing costs for qualified borrowers
  • Accommodating - allows you to use your cash-on-hand for the down payment and closing costs
  • Flexible Credit Terms - may help you qualify even if you have less-than-perfect credit or non-traditional credit references1
  • Flexibility - income from seasonal employment and secondary income may be acceptable
Call me today. Donna Clements 214-360-9505

Refinance Mortgage Rates Are Low

Quick! While mortgage rates are low.

NOW is the time to look into refinancing your home.

Opportunity Knocks!
We offer a variety of refinance loan choices, including solutions that address many of the unique challenges facing homeowners today. Let us help you achieve your home financing goal.

Don't Miss Your Chance
Whatever your refinancing needs, I'm ready to help you understand your options. Learn how fast and easy refinancing can be.

You May Be Able To:

  • Lower your monthly mortgage payments and/or eliminate costly mortgage insurance.
  • Switch from an ARM to a predictable fixed-rate loan
  • Access cash to renovate your home, pay off high-interest debt, or make major purchases
  • Get a shorter loan term to help you pay off your mortgage faster
Call me today. Donna Clements 214-360-9505

The Truth About Mortgage

Obama Urges Americans to Refinance Mortgages

Posted: 09 Apr 2009

During a Housing Refinance Roundtable today, President Obama urged homeowners to take advantage of the record low interest rates currently on offer. He made the remarks while sitting with a number of families who were able to refinance their mortgages after struggling with unaffordable payments (what about all those who are too far underwater or hold...
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Mortgage Rates Rise Off Record Lows

Posted: 09 Apr 2009

Mortgage rates increased this week after setting a new record low previously, mortgage financier Freddie Mac reported today. The popular 30-year fixed inched up to 4.87 percent for the week ending April 9, slightly higher than its 4.78 percent average last week, but well below its year-ago average of 5.88 percent. "Mortgage rates rose slightly this week ...
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Wells Fargo Mortgage Business Drives First Quarter Earnings Record

Posted: 09 Apr 2009

Wells Fargo announced today that it expects to report record first quarter earnings of $3 billion thanks in part to the current mortgage bonanza. "Business momentum in the quarter reflected strength in our traditional banking businesses, strong capital markets activities, and exceptionally strong mortgage banking results," said Chief Financial Officer Howard Atkins. "$100 billion in mortgage originations,...
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Bank of America Refinancing Under Making Home Affordable Program

Posted: 09 Apr 2009

Bank of America said today it has begun processing refinance applications under the Treasury's "Making Home Affordable" program, with nearly 200,000 customers contacting the company to determine eligibility. "Combined with historically low interest rates, this program has generated significant interest from borrowers seeking the benefit of lower mortgage payments," said Barbara Desoer, president of Bank of America...
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2009 FHA Temporary Loan Limits

FHA Temporary Loan LimitsProvided by the American Recovery and Reinvestment Act

On Feb. 17, 2009, the President signed a new stimulus bill - called the American Recovery and Reinvestment Act of 2009 - into law.

The table below explains three major impacts of the Act and the actions to provide the Act's benefits to clients and customers.

For detailed information please contact Donna at: 214-360-9505

Impacts of the American Recovery
and Reinvestment Act
FHA loans will temporarily revert to the higher of loan amounts allowed in 2008 with the Economic Stimulus Act or HERA 2009 permanent loan limits
Effective March 4, 2009, the FHA loan limit increases are available.

This article explains the details of the 2009 FHA temporary loan limits.

FHA Streamlines are not allowed under the High Balance FHA Loan Program at this time.
Conventional loans will temporarily revert to the loan amounts allowed in 2008 with the Economic Stimulus Act or HERA 2009 permanent loan limits
Closely working with Fannie Mae and Freddie Mac to provide the 2009 temporary loan limit increases as soon as possible.

Watch for additional information in the future.
VA loans are NOT impacted by the 2009 temporary loan limits announced by the American Recovery and Reinvestment Act.

Obama's Refinancing Plan Could Repair an Ailing Market

By Kenneth R. Harney

Saturday, February 28, 2009; F01

Although the final operational guidelines of the Obama administration's foreclosure-avoidance programs won't be released until Wednesday, details have begun surfacing on the extraordinary refinancing opportunities that will be available to an estimated 4 million to 5 million homeowners whose mortgages are owned or guaranteed by Fannie Mae and Freddie Mac.

Under the Obama plan, borrowers who have made their monthly payments on time but whose interest rates are well above current prevailing levels in the low 5 percent range may be eligible to refinance -- despite decreases in their property values.

Neither Fannie Mae nor Freddie Mac typically can refinance mortgages where the loan-to-value (LTV) ratio exceeds 80 percent without some form of credit insurance. That insurance can be difficult or impossible to obtain in parts of the country that insurers have labeled declining markets, with high risks of further deterioration in values.

In effect, large numbers of people who bought houses several years ago with 6.5 percent or higher 30-year fixed rates cannot qualify for refinancing because their LTVs exceed Fannie's and Freddie's limits.

Using an example supplied by the White House, say you bought a home for $475,000 in 2006 with a $350,000 mortgage at 6.5 percent that was eventually acquired by Fannie Mae. In the three years after you bought, the market value of the house has dropped to $400,000, and you've paid down the principal to $337,460.

If you applied for refinancing to take advantage of today's 5 percent rates -- which would save you several hundred dollars a month -- you would have difficulty because your LTV, at 84 percent, exceeds Fannie's 80 percent ceiling.

But under the Obama refi plan, Fannie would essentially waive that rule -- even for LTVs as high as 105 percent.

In this example, you would be able to qualify for a refinancing of roughly $344,000 -- your present balance plus closing costs and fees -- at a rate just above 5 percent.

In a letter to private mortgage insurers Feb. 20, Fannie and Freddie's top regulator confirmed that there would be no requirement for refinancers to buy new mortgage insurance, despite exceeding the 80 percent LTV threshold.

James B. Lockhart III, director of the Federal Housing Finance Agency, described the refinancing opportunity as "akin to a loan modification" that creates "an avenue for the borrower to reap the benefit of lower mortgage rates in the market."

Lockhart spelled out several key restrictions on those refinancings:

  • No "cash outs" will be permitted. This means the new loan balance can total only the previous balance, plus settlement costs, insurance, property taxes and association fees.
  • Loans that had mortgage insurance will likely continue to have coverage under the existing amounts and terms, thereby limiting Fannie and Freddie's exposure to loss. But loans where borrowers originally made down payments of 20 percent or more will not require new insurance for the refi, despite current LTVs over the 80 percent limit.
  • The cutoff date for the program is June 10, 2010.

Lockhart said that although Fannie and Freddie would be refinancing portions of their portfolios into lower interest-rate, higher LTV loans, he expects their exposure to financial loss should actually decline.

"In fact, credit risk would be reduced because, after the refinance, the borrower would have a lower monthly mortgage payment and/or a more stable mortgage payment," he said.

This, in turn, would lower the probability of loss-generating defaults and foreclosures by those borrowers.

Because Fannie and Freddie operate under direct federal control -- known as conservatorship -- any additional losses to the companies would inevitably be borne by taxpayers.

How it works out may well depend on whether the Obama administration's broader efforts to stabilize housing prices, reduce foreclosures and push the economy out of recession are successful.

If large numbers of beneficiaries of these special refinancings ultimately cannot afford to pay even their cut-rate replacement loans and thus go into foreclosure, red ink could flow in rivers from Fannie and Freddie.

Because that's an unknown and the refi program is an immediate, here-and-now money-saving reality, homeowners ought to make the most of it.

If you know that Fannie or Freddie owns or guarantees your mortgage -- your loan servicer can tell you -- and you have an on-time payment record and an interest rate above today's prevailing levels, start assembling your financial records and get ready to refi.

Important Commercial Loan Update - Effective March 1, 2009

10 Financed Properties Allowed Again!

On February 6th, 2009 FNMA announced their plan to allow up to 10 financed properties per borrower again.

This rule had been pulled back to just 4 properties last year and as a broker who works exclusively with investors this was a painful change.

Well as part of the overall plan to save the housing market, FNMA has acknowledged that allowing investors to provide rental homes is a good idea. So for well qualified applicants we can now do loans on properties 5 through 10.

A few details:

· This is allowed for purchases and limited cash out transactions only.
· FICO must be above 720
· Client will need 6 months reserves for each property owned plus the one being financed.
· Loan to value for purchase is 75% and refinance is 70% LTV.

U.S. mortgage rates dropped

U.S. mortgage rates dropped to the lowest in more than three decades as the government stepped up efforts to revive the housing market.

The average rate on a 30-year fixed mortgage tumbled for a ninth straight week, to 5.10 percent from 5.14 percent a week earlier, Freddie Mac said in a report today. That's the lowest on record, according to data that goes back to 1971, the McLean, Virginia-based mortgage buyer said.

Treasury to Reduce Interest Rates on Some New Loans to 4.5%

WASHINGTON -- The Treasury Department is considering a plan to revitalize the U.S. home market that would push down interest rates for loans to purchase a home, according to people familiar with the matter.

The plan, which is in the development stage, would temporarily use the clout of mortgage giants Fannie Mae and Freddie Mac to encourage banks to lend at rates as low as 4.5%, more than a full point lower than prevailing rates for standard 30-year fixed-rate mortgages.

Jumbo mortgages became more expensive

Jumbo Mortgages became more expensive and harder to come by as the nation's credit crisis deepened. That might be starting to change.

"Jumbo" refers to mortgages that are too large to be bought by Freddie Mac or Fannie Mae. The "conforming loan limit" for those government-backed entities is $417,000 in many parts of the country, but goes as high as $729,750 in high-cost areas of the continental United States.

The average 30-year fixed-rate jumbo mortgage averaged 6.5% for the week ended March 27 -- the lowest since May 2007, according to HSH Associates, a publisher of consumer loan information. On Oct. 31, the average rate on a 30-year fixed-rate jumbo mortgage was 7.9%, according to HSH data.

Commercial real estate prices continued falling

In June, according to the Moody's/REAL Commercial Property Price Indices (CPPI), which recorded a 3.3% monthly decline, marking a 9.6% decrease from year-ago levels. June is the fourth straight month the index has declined. The CPPI now stands 11.8% below its peak in October 2007.