The average rate for a 30-year fixed-rate mortgage has fluctuated between just above 4% and 4.5% for most of 2014. The Federal Home Loan Mortgage Corp., (Freddie Mac), is predicting rates will rise to 5% in 2015. Factors contributing to an anticipated rate increase include a strengthening economy and the unemployment rate is falling and is expected to continue to do so. This fall is a great time to buy or sell as the mortgage rates are still low.
What is the median age of a home built in the America? Good question… would you believe it is 40! In 1974, when those houses were built, the interest rate on a 30-year fixed mortgage was 9.1%; the median existing home price was $32,000; President Gerald Ford announced a $300 million mortgage credit initiative to help alleviate the housing market recession; and the energy crisis had spurred the incorporation of energy-efficient features in new construction.
What does the U.S. housing stock by age look like?
Source: U.S. Census Bureau’s 2011 Housing Profile, published July 2013.
Fannie Mae has recently announced the waiting period requirements for borrowers who have has a previous deed-in-lieu of foreclosure or pre-foreclosure sale are being updated to now require a four-year waiting period; through a two-year waiting period will be permitted if the event was due to extenuating circumstances. The loan-to-value restrictions previously tied to different waiting period time-frames are also being removed.
This is good news for those conventional mortgage loan borrowers who do not have the 20% down payment and only have the 10% down payment on a home purchase. You no longer need a 10% down payment to qualify for a conventional mortgage load after the 4 year waiting period requirement. Fannie Mae will allow a home buyer to only put a 5% down payment on a home purchase to qualify for a conventional mortgage load 4 years after a short sale or deed in lieu of foreclosure.
Short Sale/Deed in Lieu of Foreclosure
(Changes for applications taken on August 16, 2014 or later)
Waiting Periods Under the Old Guideline (On or before 8/15/2014)
Waiting Periods Under the New Guideline (On or after 8/16/2014)
Senior housing cooperatives are an increasing popular housing option for active adults 55+. As the baby boom generation reaches retirement age and considers the many lifestyle choices available, the cooperative model is gaining greater popularity.
Cooperative living is simply ownership in a facility. Members become owners when they buy a share in the property and are then entitled to occupy a specific unit and cast one vote in all cooperative matters.
Each month members pay an amount that covers their share of the operating expenses of their cooperative corporation. As a result, there are no major financial surprises.
There are two primary costs involved in a cooperative:
Senior housing cooperatives are designed to be affordable, to provide peace of mind, to protect members’ investment, and is easy living. No more mowing and no more snow removal. Plumbing hassles or leaking roofs are handled by the cooperative not you.
Want to head to a warmer climate during the winter? No problem. Pack your bags and go. You are free to enjoy your life and do the things you like to do.