AnnZeilingold.com

Case-Shiller: Home Price Growth Slower in April

Case Shiller Home Prices San Francisco Denver see Double Digit Increases

According to the Case-Shiller 20-City Home Price Index for April, home prices slowed from the March reading of 4.30 percent year-over-year to 4.20 percent year-over-year. David M Blitzer, Chairman of S&P Index Committee, said that home prices are not accelerating and characterized slower home price growth as “sustainable as compared to double-digit appreciation in home prices seen in 2013.”

The disparity between wage increases and home price growth was keeping would-be-buyers on the sidelines; so slower gains in home prices may bring more buyers into the market.

Denver Claims Top Spot for Year-Over-Year Home Price Growth

Denver, Colorado led home price appreciation in April according to Case-Shiller. The mile-high city posted a reading of10.30 percent year-over-year home price growth in April. San Francisco, California followed closely with a reading of 10.00 percent. Miami, Florida rounded out the top three price gains with a reading of 8.80 percent.

The lowest reading for year-over-year home price growth in April was posted by Washington D.C. with a reading of 1.10 percent. This was followed by Cleveland, Ohio with a reading of 1.30 percent and Boston, Massachusetts with a reading of 1.80 percent year-over-year home price growth.

Of the nine cities reporting higher year-over-year price gains, Las Vegas Nevada reported a gain of 6.30 percent in April as compared to a gain of 5.70 percent in March. Las Vegas was one of the hardest-hit housing markets during the recession.

Seattle Tops Month-to-Month Home Price Growth

Month-to-month price gains in April were led by Seattle Washington, which reported a home price gain of 2.30 percent. This reading was followed by San Francisco, California where home prices increased by 2.00 percent from March to April.

Denver rounded out the top three month-to-month price gains with a reading of 1.90 percent. Boston, Massachusetts reported the lowest month-to-month price growth with a reading of 0.30 percent followed by New York City’s reading of 0.50 percent and San Diego, California’s month-to-month gain of 0.60 percent.

In unrelated reports, the Commerce Department reported that pending home sales rose to their highest reading in more than nine years. Pending home sales rose by 10.40 percent year-over-year in May. Pending home sales are seen as a reliable indicator of future closings.

July 1, 2015 by · Leave a Comment

Buying a New Home? 3 Tips for Being Approved for a Second Mortgage – and How to Manage It

Buying a New Home? 3 Tips for Being Approved for a Second Mortgage - and How to Manage It Applying for a second mortgage is a great way to keep your down payment amount to a minimum and to keep more of your cash in your bank account. It can also help you to avoid making PMI payments, and some lenders may even waive escrows for taxes and insurance if you use a second mortgage instead of a higher first loan amount. Whether you want to enjoy some or all of these benefits, you may be wondering what it takes to set up a second mortgage. With a focus on these tips, you can more easily get the financing structure that you desire.

Make Your Request Up-Front

Financial circumstances can change over the course of the loan process, but it is usually best to request a second loan up-front. A second mortgage will change how the first loan request is underwritten, and it may change the terms that you qualify for. In addition, there is often a different underwriting process for the second mortgage. By making both loan requests at the same time, you can save time and minimize the need to backtrack through underwriting.

Work With a Mortgage Broker

Some mortgage lenders will provide you with both a first and a second loan, but it is far more common for these two mortgages to come from different financial institutions. Some banks and direct lenders will only work with a handful of second loan companies, but a mortgage broker may be able to shop around to get the best overall deal on your second mortgage terms. Therefore, if you plan to apply for a second mortgage, there may be benefit with working with a mortgage broker.

Consider Paying Off Debts

You will need to qualify for both your first and second loans separately, but the payment for both will be considered during underwriting. If you have a high debt-to-income ratio, you may consider applying for a higher second mortgage to pay off some outstanding debt. You can work with your trusted lender or mortgage company to think creatively with regards to the best overall structure of your financing and to determine if any debts need to be paid off prior to or at closing.

A second mortgage provides you with many benefits when buying a home. Speak with your trusted loan officer or broker today regarding the options available for a second mortgage for your home buying plans.

June 30, 2015 by · Leave a Comment

Next Page »