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Newport News, VA Real Estate News

By Michael Mapes-Suntrust Mortgage
(Sun Trust Mortgage)
 Capital Markets UpdateBy Michael Mapes, the responsible mortgage lender  There is good news on the capital markets front.  While we are still seeing the major hedge funds and investment banks pull back from extending credit we are starting to see major improvements in the jumbo markets and a trickle of activity starting to return to the Alt A markets.How long will this last  Hard to tell how long this will last.  Best guess is that it is going to last until the 3rd or 4th quarter of 2008.  While every one seems to know what the fix is.  It is simply a matter of time while the standing inventory of homes and those beginning the foreclosure process work their way through the system.What kind of loans can be done today?     The word on Wall Street is prime credit is king.  The problem has...
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Is the US economy headed towards a recession? And if so what does it mean?By Michael MapesAs economic data continues to pour in it looks pretty likely that an economic recession is all but inevitable.  A recession is defined as two quarters of slowing economic growth.  In any economy the main driver of economic activity is the consumer or end user of a product or service.  When one looks at the down turn in housing and the erosion of 23 trillion dollars in equity the question becomes not are we headed to a recession but what does that recession look like?How does a recession bring opportunity?In any economic or business cycle opportunities to expand are there.  In most cases when you start to talk about a recession consumers start to take a defensive position when it comes to credit and...
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By Michael Mapes-Suntrust Mortgage
(Sun Trust Mortgage)
Out with the old and in with the New, FHA reform makes homeownership more affordable.By Michael MapesIn today's ever changing landscape of mortgage financing consumers left wondering if the can afford the American Dream can now begin to look to Congress for much needed relief. Wondering in the Halls of Congress is the FHA reform bill.  As it moves between both Houses of Congress many consumers as well as real estate professionals wait in anticipation as the final bill gets voted on and heads to the President for signature.While the final passage is weeks away what is certain that momentum appears to be on the side of the consumer.  FHA created during Franklin D. Roosevelt's administration was charged with aiding low and moderate income households with a financing vehicle to be able to p...
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By Michael Mapes-Suntrust Mortgage
(Sun Trust Mortgage)
Mortgage Matters,  Weekly Review of Mortgage Rates for September 22ndBy Michael MapesTuesday's Rate Cut Erased by Thursday's Sell Off  Mortgage Interest Rates started the week off with a bang as the Federal Reserve Rate Cut saw investors flocking to mortgage backed securities.  This buying activity pushed rates much lower.  However, by Thursday mortgage rates started a rapid increase back to pre-cut levels.  As bond traders and foreign investors began to view the high cost of oil and a plummeting dollar as a sign of inflationary fears, along side these fears was the initial jobless claims for September, which was better than expected.  The net result of this was the selling of U.S. Treasuries and mortgage backed securities.  Mortgage rates finished the week higher by ¼ of a discount poi...
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By Michael Mapes-Suntrust Mortgage
(Sun Trust Mortgage)
Senate Banking Committee passes FHA Reform Bill.By Michael MapesBy a 20-1 vote, The Senate Banking Committee passed the FHA Reform bill.  Unlike the House version which passed in May of this year, the Senates version eliminates the 0 % down option and places a 1.5% down payment requirement as well as raises the loan limit in high cost states to $417,000.  Furthermore the House passed a FHA Reform 348-72 that would raise the FHA lending limit to over $700,000 in high cost areas across the nation.In Congressional testimony Ben Bernanke, Federal Reserve Chairman cited FHA inability to meet market demands as one of the many reasons consumers were placed in Sub Prime loans and seemed to endorse the current action working it way through both Houses of Congress.  He did however, caution Congre...
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By Michael Mapes-Suntrust Mortgage
(Sun Trust Mortgage)
Mortgage Rates rise as the effects of a rate cut fuels inflation fears.By Michael MapesOften times when you are in an uncertain market like the one we are in now, the slightest rumor or hint of a rumor is enough to erase gains made earlier in the week.  This effect has been in play today with mortgage interest rates.For the last few weeks speculation that the Federal Reserve would cut the Fed Funds rate has led bond traders to price their bonds for sale as if the cut had already happened.  This is typical and customary.  However, as the market opened up today the word was Inflation.  Lower interest rates have the effect of putting upward pressure on prices.  The reasoning behind this is that as money enters the market place it looks for somewhere to be spent.  However, the supply of mon...
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By Michael Mapes-Suntrust Mortgage
(Sun Trust Mortgage)
 Federal Reserve cuts rates and Mortgages Respond.By Michael Mapes, The Responsible Mortgage Lender.ComFinally the Federal Reserve Chairman Ben Bernanke rode to the rescue of the financial markets.  While the move was widely expected the buzz the Fed created was the size of the cut.  Many Leading Economists expected only a .25 basis point cut in the Fed Funds Rate, today Chairman Bernanke delivered a .50 basis point cut.What does a Fed Rate Cut do?When the Fed cuts the Fed Funds rate they are cutting the rate at which banks loan money to each other on a short term basis.  The most immediate result of a rate cut is a cut in the Prime Lending Rate.  This is the rate that banks charge their best customers (typically large corporations).  Those corporations in turn take the proceeds of a lo...
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By Michael Mapes-Suntrust Mortgage
(Sun Trust Mortgage)
Federal Open Market Committee cuts key interest rateBy Michael Mapes, http://www.theresponsiblemortagelender.comOn September 18th the Federal Open Market Committee ended 4 years of keeping rates unchanged by cutting the Fed Funds Rate .50 basis points to 4.75%.  This move was widely expected and should begin the process of injecting confidence back into the financial markets.  Although not all the news was as good, the guidance from the Federal Reserve going forward was one of caution that inflationary concerns are still in existence.  Any further rate cuts will be based upon economic data with the most important data being the unemployment rate and core inflation.   For more information on the Federal Reserve visit www.federalreserve.govMichael Mapes can be reached for comment at 757-5...
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By Michael Mapes-Suntrust Mortgage
(Sun Trust Mortgage)
Consumers receiving mortgage loans with No Income, No Job and No Assets.....No Really.By Michael Mapes, http://www.theresponsiblemortgagelender.comI opened up my email this evening and in my in box was an email from a good friend of mine asking me about NINJA loans.  I was perplexed thinking this was some kind of joke.  So I decided to play along and explained that NINJA loans were a special kind of loan given to members who could trace their roots back to the Ming Dynasty.  My friend after giving me a hard time tried to explain that she had just heard of this on the radio.  So, I decided to go on a hunt to find out what a NINJA loan was.  No Income No Job No Assets.....No Really  It appears that in the craziness of the sub prime melt down, creative mortgage brokers have figured out a w...
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By Michael Mapes-Suntrust Mortgage
(Sun Trust Mortgage)
 What a Federal Reserve Rate cut means to Mortgage Rates.By Michael Mapes, The Responsible Mortgage Lender.ComHistorically, mortgage interest rates are not influenced by actions at the Federal Reserve.  The reason for this is simple, mortgage rates are traded securities and the secondary or bond market sets those prices.  The Federal Reserve through monetary policy stimulates the economy through The Fed Funds Rate (The rate that banks loan money to each other) and the Discount Rate (the rate the Federal Reserve Loans Banks Money for overnight activity).  When the Fed Funds Rate is lowered it is immediately followed by a lowering of the Prime Lending Rate, which is the rate that banks loan money to its best customers.So what does this all mean for mortgages?The amount of the rate cut on ...
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By Michael Mapes-Suntrust Mortgage
(Sun Trust Mortgage)
Misleading Mortgage Ads.  By Michael Mapes, The Responsible Mortgage Lender  The Federal Trade Commission (FTC) announced today a stepped up surveillance of deceptive mortgage advertising, and it has warned 200 mortgage brokers and media outlets of the violations.  Included in the guidance where suggestions of mortgage lenders and advertisers touting low rates that either did not exist or accurately disclose the true cost of credit.  In June the FTC concluded a nationwide review of mortgage advertisements and found that a majority violated the Federal Truth in Lending Act.  Many of these advertisers touted rates as low as 1% but failed to adequately disclose the actual true interest rate and cost or the actual Annual Percentage Rate.
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By Michael Mapes-Suntrust Mortgage
(Sun Trust Mortgage)
Noah did not get a Sub Prime or Exotic Mortgage and neither should you.by Michael Mapes, The Responsible Mortgage Lender  Sometime around Noah's 500th birthday God commissioned Noah to build an Ark.  While I can not imagine what Noah looked like at 500 or what he looked like when the flood came when he was 600.  What I can tell by all accounts is that it took Noah the better part of 100 years to build the Ark.I am not even sure if they had banks or money lenders back then.  What I do know is that the Ark was 450 feet long and 75 feet wide and 45 feet high.  That takes a lot of lumber, patience and planning.  Not to mention nails, hammers, saws and other raw materials to build this massive ship.  Noah had to have a plan, after all The Ark was going to be his home and that of his family a...
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By Michael Mapes-Suntrust Mortgage
(Sun Trust Mortgage)
President Bush announces bold initiative to Rescue homeowners from Sub-Prime LoansBy Michael Mapes, The Responsible Mortgage Lender.What took place on Friday morning could very well change the economic course of 240,000 families across this nation. As President Bush approached the podium to announce his administration plans to aid homeowners in jeopardy of losing their home. The financial markets had already begun to respond positively to the much anticipated news.At 11:00 am eastern standard time, President Bush announced that HUD (Department of Housing and Urban Development) would allow FHA (Federal Housing Administration) to begin rolling out the new FHASecure loan. This loan is designed to help families who of no fault of their own were victims of predatory lenders and misleading lo...
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By Michael Mapes-Suntrust Mortgage
(Sun Trust Mortgage)
Understanding the Recent Credit Crunch and Liquidity IssuesBy Michael MapesThe question on most people's mind these days is "When is the madness going to exit the market and things return to normal?" By now everyone has heard the tales of how we got here. It all started by the lenient lending practices of the major mortgage banking firms. This lenient behavior combined with declining home values and severe defaults in 2006 and 2007 on sub-prime and Alt A mortgages left investors of mortgage backed securities highly leveraged and many were wiped-out as the losses grew. The major investors of mortgage securities are hedge funds, insurance companies and foreign banks. As these investors were forced to sell assets, Wall Street dealers became increasingly inundated with new loans and bonds a...
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By Michael Mapes-Suntrust Mortgage
(Sun Trust Mortgage)
Understanding the Annual Percentage Rate (APR)by Michael Mapes, The Responsible Mortgage LenderThere is a lot of talk in the mortgage industry about annual percentage rate (APR). In fact, APR is a required disclosure on many advertisements. When you are watching TV, listening to the radio or even reading the newspaper you see all these great interest rate deals on mortgage loans, followed up by what the APR is or the true cost of the credit. While most people have a vague understanding of APR, few fully understand the concept; yet many make decisions based on it. This is one of those subjects where a little information can be counterproductive. Many people make decisions-bad decisions-using a tool they don't really understand.This is not a course in mathematics, and it won't make you an...
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By Michael Mapes-Suntrust Mortgage
(Sun Trust Mortgage)
The U.S Senate Starts Debate on The 2007 Modernization of Federal Housing Administration ProgramsBy Michael Mapes,On July 18th of 2007 The Senate Banking Committee chaired by Sen. Chris Dodd (D-Ct) opened hearings on the 2007 FHA Modernization Bill. While this bill is identical to the bill that was tabled last year in committee, it is clear that The Senate still has issues with this bill. Having already cleared the House in May 2007, it now turns to the Senate where passage is far from certain.In opening statements by Sen. Jim Bunning (R-KY) and Sen. Richard Shelby, Ranking Member (R-AL) both voiced concerns about allowing FHA to expand it's operations to include 40 year amortization, 100% financing and a lowering of the credit criteria that these loans are based upon.The chief reason b...
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By Michael Mapes-Suntrust Mortgage
(Sun Trust Mortgage)
How one homeowner escaped a predatory home loan.By Michael Mapes, The Responsible Mortgage Lender.When a person buys a home there is a sense of pride that comes along with home ownership.  The sheets are whiter, the food taste better and overall it lifts a persons self esteem.  However, in recent months we have begun to see the effects of aggressive and sometimes predatory lending.  Homeowners are being strapped with loans that carry pre-payment penalties along with interest rates that are beginning to adjust.  As a result first mortgage defaults are beginning to rise at an alarming rate.One homeowner, however has found an escape to all this and will soon begin to live and breath again, knowing that his home is secure and his families future is once again bright.  It all started in the ...
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By Michael Mapes-Suntrust Mortgage
(Sun Trust Mortgage)
Adjustable Rate Mortgages, Types of ARMs and how they adjust.  By Michael Mapes, host of www.theresponsiblemortgagelender.comAs A Mortgage Lender in Hampton Roads, Virginia, understanding the pros and cons to Adjustable Rate Mortgage can be difficult at best.  However, Adjustable Rate Mortgages when properly managed can be a good and wise investment.Adjustable Rate Mortgages (ARMs) become more popular as interest rates rise, and for good reason they make sense.  They are, however, not without an element of risk. When interest are low....The spread between adjustable rates and fixed rates is small.The likelihood of the adjustable rate increasing is relatively high.Most borrowers prefer the safety and value of a fixed rate.When Interest rates increaseThe spread between adjustable rate and...
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By Teresa Sullivan
(GSH Real Estate)
The Real Estate Market on the Virginia Peninsula sets itself apart from our sister cities as we move forward into 2007.  The Peninsula currently has 3 times the number of homes listed for sale in MLS than we did last year this time; however, sales remain about the same.  Of course, for sellers, this means that the market time is about triple what it was last year; buyers have more leverage when negotiating offers; and prices are adjusting.  This seems to be about the same for markets across the country; however, our absorption rates differ greatly in comparison to our neighboring cities.The absorption rate on the Peninsula for our current inventory indicates about a 4 to 5 month supply while Williamsburg & the Southside markets range from 7 to 9 months.  With specific price ranges, neig...
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