Nearly eighty percent of American households believe that NOW is a good time to buy a home, according to the MBA and the Research Institute for Housing America (RIHA), which just released their new exclusive report: "The Great Recession and Attitudes Toward Home Buying." "The report finds that almost 80 percent of American households believe that now is a good time to buy a home, despite high unemployment, slow economic growth and problems plaguing the economy.
This positive attitude is attributable to low house prices and low mortgage interest rates. The data shows that the pattern of home-buying sentiment during the current recession looks similar to that of past recessions and is consistent with the long-run average level." This is good to know, and it is good to know that it is free at and available for download at www.housingamerica.org.
People in the mortgage banking industry are beginning to talk about the "new normal." After years of unusually robust economic growth, we've fallen into a period of weak demand and it requires a complete reassessment of priorities and future expectations.
Origination volume has dropped from a peak of $3 trillion in 2005 to a volume of less than $1 trillion in 2012 - a level not seen since 1997. With faint hope of near-term recovery, mortgage lenders need to think strategically about a future that demands a leaner, more efficient business model.
Lender profitability is measured by the amount of gain earned off loans sold to investors. This gain is simply the difference between the price sold to originators (the buy-side position) versus the price sold to investors (the sell-side position). As long as the originator’s price is accurate and the investor is providing the best possible price at delivery, lenders optimize their revenue efficiency and ensure themselves a high margin per loan.
One-eighth of a point on a $200,000 loan might only be $250, but when the Mortgage Bankers Association reports that average profit per loan in the second quarter of this year was only $575, you’re talking about losing practically half of your profit. This leaves little room for other potential losses.
In this age of uncertainty, mortgage lenders are forced to evaluate their business model from all sides. By providing originators and secondary marketing with technology that enables them to make more reliable decisions, lenders can protect their profitability and lay the foundation for success in the "new normal" world of mortgage lending.
30 year fixed - 3.850% + 0% cost points for rate
20 year fixed - 3.750% + 0 % points for rate
15 year fixed - 3.250% + 0% points for rate
10 year fixed - 2.875% + 0% points for rate
5/1 ARM - 2.375% +0 points for rate
7/1 ARM - 2.750 % + 0 points for rate
10/1 ARM 3.250% + 0 points for rate
FHA/VA
30 year fixed - 3.750% with +0 % points for rate
5/1 ARM - 2.750% with + 0 points for rate
7/1 ARM - 3.25 with + .625 % CREDIT point for rate
Jumbo - over to 2,000,000
30 year fixed - 4.625 % with 0 points for rate
15 year fixed - 4.125% with 0 points for rate
5/1 ARM - 3.375% - 0 points for rate
7/1 ARM - 3.750 % - 0 points for rate
10/1 ARM - 4.375% with 0 points for rate
Jennifer Buchanan, Certified Mortgage Planning Specialist at MetLife Loans is a seasoned veteran of the Mortgage, Banking and Broker Industry and specializes in mortgage loans throughout Fairfield County, Connecticut.
Her attention to detail is unsurpassed, and her understanding of the marketplace makes it easy to find the right loan to fit her clients specific needs . Jennifer's local processing and closing team are also known for their exemplary service.
Understanding that the vast majority of mortgage brokers never discuss the long or short term financial needs or goals with their clients, she set herself apart from the rest by obtaining the coveted CMPS designation. (Certified Mortgage Planning Specialist)
She is a member of the National Association of Responsible Loan Officers, and her commitment to ethics, understanding of the marketplace, and business acumen have earned her the respect of her peers and clients alike.
Jennifer Buchanan
Metlife Loans
203-341-6949
Jennifer Buchanan- Your certified expert
on mortgages offering Free Unbiased
recommendations based on your needs.
A note from Judy: If you have a question about buying or selling Real Estate in Fairfield County, and are in need of an Realtor to represent you, I invite you to contact me, and if you have an idea for a topic that you would like to see on The CT Realty Blog, please include it in the "Post a Comment" section link below this post. We appreciate the feedback and look forward to providing you with the best real estate content, advice and service in Fairfield County, Connecticut.