Breaking News: The government budget for this year includes a hike in the cost of insurance for Federal Housing Administration mortgage loans. It is expected that this increase will go into effect shortly, however consumers that act quickly may have the ability to beat the increase. If you are thinking about refinancing or purchasing, time is of the essence. Call to find out if an FHA loan would benefit your financial situation.
The U.S. housing market will begin to mount a turnaround this year, building toward a solid recovery in 2013, according to a forecast by the chief economist of a homebuilding industry trade group. The outlook by National Association of Home Builders Chief Economist David Crowe calls for U.S. sales of new homes and single-family home construction to improve this year compared with 2011, when they hit record lows. The forecast still leaves new home sales and construction well below levels of a healthy housing market, however. That reflects the severity of the industry’s downturn, and suggests the housing market could be years away from full health. “I’m looking at 2012 as sort of a ramping event to get a much more solid recovery in 2013,” Crowe said in a telephone interview. The economist, who gave his forecast at the trade association’s annual conference in Orlando, Fla., sees sales of new, single-family homes climbing 19% this year to 360,000. Next year, he expects those sales to rise a whopping 40% to 505,000. Crowe’s outlook also hinges on unemployment staying below 8.5% and the economy adding more jobs. And he’s assuming that tight lending requirements will ease this year, enabling more homebuyers to qualify for financing. Source: Investors Business Daily
Looking for a loan on your home that will retire when you do? Or maybe you want to time a refinancing so that the loan is paid up when the kids head off to college. There are a number of lenders that would be happy to oblige. Customized home loans aren’t new. But industry experts say they are seeing more and more borrowers opt for fixed-rate loans with terms other than the standard 30 or 15 years, especially when it comes to refinancings. Last year, nearly 17 percent of all refinanced residential loans were with “other length” fixed-rate loans, according to the Mortgage Bankers Association, which noted that in August, September and October, the share was 20 percent. Most of those “other length” loans were in 20-year loans, though loans are also available for 10, 25 and 40 years, and even for “oddball” terms like 23 or 12 years. Michael Fratantoni, the association’s vice president for research and education, called the 20-year loan “a new phenomenon” and said it had “become the third-favorite product.” Source: New York Times
Baby boomers that plan to move for retirement are looking for smaller, affordable homes that are easily accessible to medical care and near their family, according to a poll of more than 1,000 adults born between 1946 and 1964 conducted by Associated Press-LifeGoesStrong.com. Baby boomers who make more than $100,000 a year are the most likely to say they plan to buy a new home during retirement. For boomers who plan to purchase a new home, the most important factors cited in a home for retirement included:
- Smaller home (40%)
- Near medical offices or hospitals (39%)
- Different climate–perhaps warmer (30%)
- More affordable home (25%)
- Being closer to family (15%)
About 10 percent of baby boomers said they will search for a new city to relocate to that offers more services for them in retirement. Only 8 percent of baby boomers surveyed say they want a larger home for retirement, the poll finds. However, more baby boomers say they don’t have any plans to move after they retire, the poll finds. Source: The Associated Press
