The Federal Housing Finance Agency is considering a possible reduction in the maximum loan limits for Columbia SC mortgages purchased by Fannie Mae and Freddie Mac, but the agency wants to collect public feedback before making any bold moves.
The GSE conservator recently sent a request for public comment to the Federal Register asking for input on the possibility of reducing the loan purchase ceilings.
The plan up for consideration would move the max loan limit for one-unit properties from its current $417,000 to $400,000, a 4% reduction. In parts of the country where the limit is $625,500, the ceiling would be pushed down to $600,000.
FHFA says before making a final move, it wants to be aware of any technical or operational concerns.
The agency also is asking respondents to determine whether a six-months advanced warning is enough time for the market to prepare for lower purchase limits.
Voice Your Input on Lower Limits on Columbia SC Mortgages
The conservator will hold off on any adjustments to ensure it has time to review all submitted comments. If changes do occur, they will not impact any Columbia SC mortgages originated before Oct. 1, 2014.
Feedback will be accepted up until March 20, 2014.
Submissions as to how you feel about the lower limits on Columbia SC mortgages can be sent to the FHFA via e-mail: loanlimitinput@FHFA.gov. We encourage you to email them and ask that limits not be lowered, as this could make getting Columbia SC mortgages more difficult for buyers in the future.
For more news and information relating to Columbia SC mortgages, check out our other mortgage related stories by clicking on the Columbia SC Mortgage Info link to your right under Columbia SC Real Estate Categories.
The days of record low Columbia SC mortgage rates have apparently come to an end as fixed-mortgage rates hover around 4%. And while there are many saying that rising rates won't hurt the housing market, others are more concerned.
Many analysts seem to agree that if Columbia SC mortgage rates rise much more above where they are now, affordability could begin to take a toll. This is especially true with first time home buyers and investors, which combined, make up a large part of the home buying market these days.
Speed of Rising Columbia SC Mortgage Rates the Biggest Concern
Fannie Mae Chief Economist Doug Duncan said the concern should be less about what the rates have risen to and more about the speed at which they are rising.
Duncan noted that in 1994, for instance, rates rose 2% over a 12-month period, resulting in a huge impact on home prices, which fell significantly.
"If the rise happens rapidly, it tends to have an impact," said Duncan, who added that once Columbia SC mortgage rates rise 100 basis points, home sales may begin to slow.
As far as first-time homebuyers go, Duncan said it all depends on how high the mortgage costs go. "It's all about the size of the mortgage that they're going to try to take on relative to their financial strength," said Duncan.
Overall, first-time homebuyers are making up about 30% of total buyers, said Duncan.
High investor activity is making up the difference, he added. "If investors fell off, would first-time buyers be bigger?" asked Duncan.
A lot lies on that very important "if," according to Duncan. If investors start to back out, you'll likely see prices flatten out.
"We do believe there is going to be a slow down," said Duncan.
But Duncan added, "We're not up to the average long run mortgage rate that the economy has seen over all those years." From World War II to today, the average 30-year fixed-rate mortgage is about 6.5%, according to Duncan, who noted, "People have forgotten that there were mortgage rates at the 14% and 15% range for awhile."
Even though Columbia SC mortgage rates have risen pretty quickly and significantly, they were from a very low level — the lowest level since World War II — so we're not even close to the average 30-year fixed-rate mortgage rate. The greater concern overall is not the level of the Columbia SC mortgage rates, but the speed at which they rise.
Energy efficient mortgages are a new and upcoming way to finance Columbia SC area homes if you’re planning to go “green”. Green homes cost more, and that added cost is often the burden that prevents more people from going the energy efficient route when choosing a new home or modification.
Energy efficient mortgages extend your buying capacity by helping you qualify for a larger mortgage. The lower utility bills you’ll have as a result of “going green” will give you more money to spend elsewhere rather than sending it to the utility company.
Energy Efficient Mortgages for Columbia SC homes are one of many FHA programs that insure mortgage loans–and thus encourage lenders to make mortgage credit available to borrowers who would not otherwise qualify for conventional loans on affordable terms (such as first time homebuyers) and to residents of disadvantaged neighborhoods (where mortgages may be hard to get).
Borrowers who obtain FHA’s popular Section 203(b) Mortgage Insurance for one to four family homes are eligible for approximately 96.5 percent financing, and are able to add the upfront mortgage insurance premium to the mortgage. The borrower must also pay an annual premium.
For more information on energy efficient mortgages, visit HUD.gov. or contact an FHA approved lender.
To get more Columbia SC mortgage information, visit our Columbia SC Mortgage Info section under our Columbia SC Real Estate Categories to the right.
Columbia SC mortgages continue to see an increase over their all time record lows, but the good new
s is, in terms of being relative, rates are still near the bottom. There’s still plenty of opportunity to refinance or buy a home and save a bundle. But if you keep waiting, all indications are you’re going to miss out.
U.S. job growth grew modestly in January and gains in the prior two months were bigger than initially reported, supporting views the economy’s sluggish recovery was on track despite a surprise contraction in output in the final three months of 2012.
According to the most recent Labor Department statistics, employers added 157,000 jobs to their payrolls last month. There were 127,000 more jobs created in November and December than previously reported.
The unemployment rate, however, edged up 0.1 percentage point to 7.9 percent. The closely watched report also showed an increase in hourly earnings and solid gains in construction and retail employment.
Where Do Columbia SC Mortgages Go From Here?
It would appear that Columbia SC mortgages will continue to slowly get more expensive, and according to analysts who track and forecast these things, rate increases show no sign of stopping anytime soon. There may be brief pauses in the increases, even a slight move down from time to time, but all indications now point to continuous increases in what consumers will pay for Columbia SC mortgages for the foreseeable future.
A survey of analysts showed split expectations, with 40 percent forecasting a rise in rates and 40 percent anticipating a fall. 20 percent said they don’t expect a great variance from where rates are now. So, it’s anyone’s guess.
For more on Columbia SC mortgages, see our Columbia SC Mortgage Info section of articles under the Columbia SC Real Estate Categories to your right.
Columbia SC mortgages, and your ability to qualify for one, will be affected by new servicing rules designed to provide homeowners with more information about their mortgages and their options, should those loans become unaffordable.
The new rules affecting Columbia SC mortgages will force banks to verify a borrower’s ability to repay loans to ward off the kind of loose lending that helped push the U.S. economy into recession. The new rules would also protect borrowers from irresponsible mortgage lending by providing some legal shields for lenders who issue safer, lower-priced loan products.
The U.S. economy is still feeling the after-effects of the bubble, which sparked a global credit crisis after it burst in 2006. As the housing market imploded, banks sharply tightened the screws on lending, affecting not only Columbia SC mortgages, but mortgages nationwide.
Because lenders are likely to want the heightened legal protection that comes with offering certain “plain vanilla” loans, the rules could go a long way in determining who gets a loan and who can access low-cost borrowing rates.
The consumer protection bureau said it would define “qualified Columbia SC mortgages” as those that have no risky loan features – such as interest-only payments or balloon payments – and with fees that add up to no more than 3 percent of the loan amount.
In addition, these loans must go to borrowers whose debt does not exceed 43 percent of their income.
The new rules establish an additional category of Columbia SC loans that would be temporarily treated as qualified. These Columbia SC mortgages could exceed the 43 percent debt-to-income ratio as long as they met the underwriting standards required by Fannie Mae, Freddie Mac or other U.S. government housing agencies.
The provision would phase out in seven years, or sooner if housing agencies issue their own qualified mortgage rules or if the government ends its support of Fannie Mae and Freddie Mac, the two housing finance giants it rescued in 2008.
Regulators also proposed creating a qualified mortgage category that would apply to community banks and credit unions.
Banks will have until January 2014 to comply with the new rules.
For more on Columbia SC mortgages and news that affects the mortgage market, click over to our Columbia SC Mortgage Info link under the Columbia SC Real Estate Categories.