Rates indicated do not include fees and points and are provided for evidence of trends only. They should not be used for comparison purposes.

If the economy keeps producing job growth, then home sales will keep rising and housing will become a positive factor with regard to economic growth in 2012. Economic growth is also the only factor which can pull Europe out of its crisis. All the austerity measures by themselves can’t pare down their deficits without growth. Therefore, the key to whether the economy will continue to grow from here is actually the economy itself. Consider a rock rolling down the hill. Last year the rock hit a bump and slowed down. However, the faster the rock rolls, the less likely bumps will be able to slow it down. A stronger economy is self-sustaining. We believe that the economy has reached an important juncture. If growth accelerates from here, it will harder to stop the rock. The rock is not rolling downhill fast enough now to overcome all the obstacles, however we are not far from that happening and the first half of 2012 will be crucial in measuring the speed of the rock.

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

What is a Mortgage Broker?

A mortgage broker is an independent real-estate financing professional who specializes in the origination of residential mortgage loans. Mortgage brokers normally pass the actual funding and servicing of loans on to wholesale lending sources. A mortgage broker is also an independent contractor working with (on average) as many as 40 lenders at any one time. By combining professional expertise with direct access to hundreds of loan products, your broker provides the most efficient way to obtain financing tailored to your specific financial goals.

What Do Mortgage Brokers Do?

In the volatile home-lending market, mortgage brokers can serve as safeguards, offering their clients security, safety, and peace of mind. One of the broker’s most important functions is escorting your loan application through the entire process, constantly patrolling the component transactions for possible breakdowns. A professional mortgage broker can wade through the mountains of rate data and program options, researching current market conditions to find the most accurate and up-to-date information about cost-effective loan options.

Brokers Handle the Details!

There are literally thousands of variables that can affect the outcome of your mortgage transaction. That’s why you need a mortgage broker to act as a liaison between the title and escrow company, real estate agent, lender, appraiser, credit agency, the underwriters, the processors, attorneys, and any other services which may affect your transaction.

A mortgage broker also:

• Discusses and explains financing program options
• Informs you, in writing, of lock-in options
• Explains all documents of the loan application
• Explains all associated costs of the loan application
• Explains the disbursement of all loan applications
• Explains the loan process, from application to closing
• Provides you with a good faith estimate of cost and fees
• Communicates with you throughout the loan process in a timely manner
• Coordinates the final closing of your transaction