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Found 20 entries for September, 2016.

The latest national index produced by Florida Atlantic University and Florida International University faculty indicates the United States housing market as a whole is moving marginally deeper into buy territory. According to the recent report from the university, this trend suggests that, on average, the majority of housing markets around the country are in good shape and remain a sound investment.

The report states that based on numbers from the end of the second quarter, the latest Beracha, Hardin & Johnson Buy vs. Rent (BH&J) Index comes on the heels of the latest S&P/Case-Shiller Home Price Index, which found home prices climbed nationally 5.1 percent since June 2015. The report also states that both indexes incorporate property appreciation from

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Conventional 97

The Conventional 97 is a low down payment mortgage program which allows first-time home buyers and repeat buyers to make down payments of just 3% against a home's purchase price. The Conventional 97 can be used for primary residences where the mortgage loan size does not exceed the national conforming loan limit of $417,000.

The "3% Down Mortgage" From Fannie Mae

For buyers looking for a low-downpayment mortgage option that's not backed by the FHA, Fannie Mae has two options -- the HomeReady™ mortgage and the Conventional 97.

HomeReady™ is limited to certain low-income census tracts; and areas with high minority concentrations. By contrast, Conventional 97 is available for use everywhere.

The Conventional 97 program is meant

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How Much Home Can You Afford?

One of the most common questions a first-time home buyer will ask is "How much home can I afford?"

The answer, as a mortgage lender will tell you, is that "it depends".

There are no concrete rules for how much home you can afford, or how big your mortgage can be.

In part, this is because mortgage lenders determine your maximum home purchase price differently from how you might calculate it yourself via a mortgage calculator.

Both methods, though, take today's mortgage rates into account.

Let's examine them.

Method 1: Let The Bank Use DTI To Determine Your Maximum Purchase Price

When you ask a bank to calculate your maximum home purchase price, the bank will give very little consideration to your

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The Typical Homeowner Moves In 7 Years

Are you paying more for your mortgage than you should be? If you're like a lot of other first-time home buyers, it's likely that you are.

And, fixing the problem could be as simple as choosing a new loan type.

As rents have climbed nationwide, mortgage rates have plunged. According to Freddie Mac, 30-year conventional fixed rate mortgage rates are the lowest they've been in at least three years; and rates for FHA and VA mortgage rates have averaged even lower.

For many buyers, though, the 30-year fixed rate mortgage is a wasteful choice. There are more logical, "less expensive" options to finance a new home.

An adjustable-rate mortgage (ARM), for example, can be a more suitable choice for a first-time

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The Value Of Having "Great Credit"

Since 2013, mortgage rates have held near four percent, which has boosted the “amount of home” a home buyer can purchase; and has increased the monthly savings available via a home loan refinance.

Historically, rates are incredibly cheap.

However, as many mortgage borrowers have learned the hard way, not everyone can access sub-4% rates.

For borrowers with conventional loans — loans backed by Fannie Mae and Freddie Mac — the ability to access these “best mortgage rates” is directly linked to their credit score.

The higher your credit score, the lower your mortgage rate. This is not news. Internet advertisements promising “credit score repair” tout the credit score-mortgage rate connection liberally.

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New Job And New Mortgage

Getting a mortgage during a job transition is common, and not a deal breaker for your mortgage.

For example, you relocate for a new position. You want to buy right away, instead of moving twice.

Or, you're staying put but just changing employers.

You can get a mortgage when between jobs by applying for an offer letter mortgage. If you are already in your new job, that is even easier.

Most of the time.

To be approved, you need income that is reliable, stable and likely to continue for at least three years. And for new jobs, you have to be making an upward -- or at least lateral -- move within the same industry.

You don’t have to avoid job or career changes before applying for a mortgage, as long as you go about

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What are the trends seen currently in the foreign buyer/investor sector of the U.S. housing market?

In general, there are a whole bunch of trends going on right now with international buyers so it's hard to say definitively what will happen but taking a look at some of the separate trends we are seeing can help to better tease out an answer.

Brexit and frankly a lot of other international uncertainties has created a "flight to safety" phenomenon were people are actually wanting to invest in the U.S. Treasury more which is why mortgage rates have been so incredibly low. With that, they also want to invest in the real estate market. Usually foreign investors tend to invest in high-end real estate or commercial.

In terms of residential investment,

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Being debt-free is great, but if you’ve avoided building a credit history, it might hurt you in the long run.

While we’re always hearing about the student loan and credit card debts we collectively carry, there are actually a few of us who don’t have loans to our names or balances on our cards. Some people avoid credit cards altogether and opt to pay in cash, assuming it’s better to be free of financial products that could potentially lead to trouble.

While this isn’t a bad way of thinking, it’s not accurate to say that avoiding credit is better than having a dinged-up score. If you ever face the decision to finance a major purchase, having no credit at all may cause more problems than having a bad credit score. You could face obstacles when

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Pending home sales in July swelled to their second-highest numbers in more than a decade, in the face of the tight inventory and flagging returns on existing-home sales this summer, according to the National Association of Realtors.

NAR’s Pending Home Sales Index for July 2016 found that, based on contract signings, pending sales rose 1.3 percent to 111.3 in July. That is 1.4 percent higher than last July and is second-highest reading this year, after April’s index of 115.

The uptick was nationwide, except for the Midwest, where pending sales dropped nearly 3 percent in July. The Northwest and South each inched up by 0.8 percent, but the West showed a 7.3 percent increase in pending sales.

Lawrence Yun, NAR’s chief economist, said the index in

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Both current homeowners and renters agree that home values are going to continue to appreciate. However, the effect of home value appreciation on the confidence of current homeowners in the housing market is quite different when compared with the confidence of renters.

Home values are near or past their pre-crisis peak in about a quarter of U.S. metros, which indicates recovery for these markets—but at the same time, a gap has been forming between renter and homeowner sentiment toward the housing market.

According to Zillow’s latest Housing Confidence Index, released on Thursday, existing homeowners are becoming increasingly confident that now is a good time to sell—in fact, they are generally more positive toward selling than buying. The share of

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