Refinance, Home Equity Dominate CFC Lending
Countrywide Financial has April numbers out this morning and they show that homeowners are mostly refinancing and cashing out on home equity. "Purchase fundings include first trust deed and home equity loans used as purchase money debt in the acquisition of a home. Non-purchase fundings include first trust deed refinance loans, home equity refinance loans, and stand-alone home equity loans."
Mortgage Loan Fundings:
Purchase $16,913
Non-purchase $17,492
Total Mortgage Loan Fundings $34,405
Mortgage Loan Fundings by Product:
Government Fundings $792
ARM Fundings $19,583
Home Equity Fundings $3,519
Nonprime Fundings $2,922
Numbers are in millions$. Inman News has some details.
3 Comments:
Overvalued! Reports suggest appraisers face enormous pressure to tweak their numbers.
http://www.csmonitor.com/2005/0509/p13s02-wmgn.html
From the article:
But a too-high or too-low appraisal can spell big trouble for buyers and lenders. Imagine, for example, that an appraiser artificially boosts the value of a $200,000 home to $230,000. The purchaser - or someone who's refinancing her home - "may decide to tap this artificial equity, and it's not really there," says Alan Hummel, an appraiser in Des Moines, Iowa, and former president of the Appraisal Institute. "When they turn around and try to sell the property, they're upside down. They can't sell it for what they owe against it."
The lender, often a bank, may find itself on the hook too: If it needs to foreclose on a default loan, it might not get the amount it lent out.
John Law, arent a bunch of Poconos developers in hot water because of inflated appraisals and predatory lending? The Poconos is a huge bubble of 2nd homes ready to pop. I've actually got my eye on some of the custom homes that have been completed in the last 2 years and hope to be able to buy one the future for 50 cents on the dollar. Unlike most 2nd home owners in the Poconos, I actually like to hike and fish in the summmer and snowboard in the winter. So i will actually have real use.
Retirees: Should You
Pay Off Your Mortgage?
...those who might consider keeping their mortgage include those homeowners:
--whose investment portfolio is worth less than their mortgage
--who have a large investment portfolio (larger than their mortgage), invest 60% of their money in stocks and 40% in bonds, and have a long-term time horizon
http://www.realestatejournal.com/buysell/mortgages/20050504-powell.html?mod=RSS_Real_Estate_Journal&rejrss=frontpage
But what if they keep their mortgage and their stocks and bonds tank? Is this possibility even a consideration anymore?
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