Bill to be Introduced for Homeowners to Refinance

Bill to be Introduced for Homeowners to Refinance
The Federal Savings Bank encourages homeowners to refinance as the process may become easier with the help of a couple senators.
 Chicago, IL - February 13, 2013

Homeowners must ask themselves if they are interested in leveraging their equity to repair or enhance their home, this is especially important if the homeowner is planning to retire in the next 15 years and want to pay off their mortgage faster. Homeowners should also consider applying for the Home Affordable Refinance Program, which could help restructure a mortgage, possibly reducing the amount paid monthly.

The Federal Savings Bank tells homeowners who are facing foreclosure and struggling to find ways to pay their mortgage that refinancing may be the best option. Further, refinancing may become even easier in the coming months.

A bill was recently reintroduced on February 7th by U.S. Senators Robert Menendez from New Jersey and Barbara Boxer from California that aims to help responsible homeowners refinance their homes at lower interest rates and build thousands of dollars in savings throughout the year. "We need to bring much-needed relief now to hard working, responsible homeowners who are struggling to keep up with their high interest rate loans - including thousands in New Jersey whom I have heard from" said Menendez. "We need to do this before interest rates go up again. It's time that Congress finally put families first and give homeowners who have played by the rules a fair chance to refinance at today's low rates."

The original bill was introduced in the 112th Congress. With current interest rate being 3.53 percent on a 30-year mortgage, The Federal Savings Bank feels Americans cannot afford not to refinance!

Tips on refinancing 

* Here are your most common questions:

- What if I don't have a big down payment ?

- How much house can I afford?

- How do I select the right Realtor?

- How to write a strong purchase offer?

- What does Pre-Approved mean?!

- I need help as a first time home buyer?!

Homeownership finds importance among young consumers

Home ownership finds importance among young consumers

The Federal Savings Bank
February, 2013

A recent survey found the importance of home ownership to many young consumers across the country is growing. The survey, conducted by Prudential Real Estate, found the majority of consumers between the ages of 25 and 44 found owning a home to be significant.

However, when broken down into smaller age categories, desire of ownership increased. A reported 77 percent of individuals age 25 to 34, and 78 percent of those between age 35 and 44 felt it was very important to own a home.

Seventy-four percent of young consumers polled in the survey also found that right now would be a good time to buy a home because of the current levels of affordability from low interest rates. Earl Lee, chief executive officer at HSF Affiliates LLC and president of Prudential Real Estate, while discussing the younger generation said "They are generally optimistic about home ownership and, by nature, share a strong sense of community. As important, many were not impacted by the real estate downturn and are looking at today's buying opportunities with keen interest."

As a result of the survey, many believe more buyers will continue to enter the market during the year as interest rates are staying low compared to norms throughout the housing market's history.

VA loans provide home ownership hopes to veterans returning from overseas service

Veterans who are returning from deployment overseas can take advantage of the low interest rates as well as the younger generations' interest in buying a home. The Department of Veterans Affairs offers loan guarantees for eligible veterans to purchase a home for their personal occupation.

A home may be purchased with a VA loan with no money down and eligibility requirements include a good credit score, a sufficient income, a valid Certificate of Eligibility (COE) and meet certain requirements depending on the branch of military service.

Completed foreclosures total 767,000 in 2012

The Federal Savings Bank

February, 2013

There were 767,000 completed foreclosures in 2012, with 56,000 being reported in December alone.

CoreLogic, one of the leading source of residential property information, analytics and services, recently released its National Foreclosure Reports, showing a decrease in foreclosures on a year-over-year basis. There were 71,000 completed foreclosures reported in December 2011, showing an annual decrease of 21 percent when compared to the same month in 2011.

The number of foreclosures also decreased 3 percent on a month-over-month basis from November to December. Considering the number of foreclosures are still high around the country, first-time homebuyers might think now is a great time to invest in the housing market and take advantage of the low prices.

"The most encouraging foreclosure trend reported here is that the inventory of foreclosed properties is almost 20 percent smaller than a year ago," said Mark Fleming, chief economist for CoreLogic. This big improvement indicates we are working toward resolving the backlog of the most distressed assets in the shadow inventory.

There were close to 1.2 million homes in the national foreclosure inventory by December 2012 compared to 1.5 million that were reported in the same month of the previous year.

Most affected states
The five states with the highest number of completed foreclosures were California, Florida, Michigan, Texas and Georgia, ranking from the highest to the lowest, respectively. These five states also accounted for close to half of all the completed foreclosures reported nationally.

"The rate of foreclosures continues to trend down, albeit at a slower rate as we exit 2012," said Anand Nallathambi, president and CEO of CoreLogic. This trend should continue into 2013 and is another positive signal that the gradual healing process in the housing market is gaining traction.

Americans who are looking to purchase a new home might find Realtypin.com's recently released tips helpful. The source suggests finding your own lender, hiring your own home inspector and finding out how much your options will costs before making any definite deals. Proper planning could prevent many new home buyers from making the mistakes that are common among those investing in property.

* Here are your most common questions:

- What if I don't have a big down payment ?

- How much house can I afford?

- How do I select the right Realtor?

- How to write a strong purchase offer?

- What does Pre-Approved mean?!