Honolulu HI home loans, real estate loans, home finance information – Legacy Mortgage

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Will property values continue to decline on Oahu?

June 25th, 2009 2:47 PM

Yes, for the following reasons:
1. There are less qualified buyers today than 5 years ago.
2. Appraisers are now working for the banks (HVCC), their appraised values on properties are very conservative and low, thus, lowering values through out the state.
3. Potential buyers are waiting for prices to decline further before considering to buy.
4. The increasing cost to buyers; larger down payments, higher mortgage insurance, added fees by banks due to less than excellent credit scores.

Posted by Coach Bob Iinuma on June 25th, 2009 2:47 PMPost a Comment (0)

What is HO-6 and should a borrower be concerned?

June 25th, 2009 2:16 PM

HO6 is a personal home insurance policy for homeowners. Under the new FannieMae and FreddieMac guidelines, condo owners will need a HO6 coverage of 20% of their property value. The insurance coverage of HO6 goes beyond the basic coverage paid for by the condo association. Depending, the annual cost of a H06 policy ranges from $300 to $500. The HO6 guideline does not effect single family homes, condos only.

Posted by Coach Bob Iinuma on June 25th, 2009 2:16 PMPost a Comment (0)

What is HVCC and is it good for the borrower?

June 25th, 2009 2:06 PM

The Home Valuation Code of Conduct, HVCC, a government guideline on appraisal ordering went into effect on May 1, 2009. In a nutshell, all appraisal ordering must originate from the lending banks instead of the Mortgage Brokers. The intent of this new guideline is to stop Mortgage Brokers from influencing the appraiser on the value of properties. The HVCC will be in effect for 18 months.

REPERCUSSIONS OF THE HVCC:
1. Appraisal values are lower and more convervative.
2. Loan files cannot be transferred from one lender to another without ordering a new appraisal from the new lender.
3. Mortgage brokers and banks are canceling many loans due to low values on the subject properties.
4. HVCC is not good for borrowers, banks or mortgage brokers.

Posted by Coach Bob Iinuma on June 25th, 2009 2:06 PMPost a Comment (0)

Will mortgage interest rates fall below 4.25%?

June 23rd, 2009 2:08 PM

At this point, the only way interest rates will fall below 4.25% is if Wall Street suffers greater losses than in 2008. Then, investors will take their money out of stocks (risky) and invest in Treasury Bonds (safety), and rates will dive. This scenario is highly unlikely, yet very possible.

Posted by Coach Bob Iinuma on June 23rd, 2009 2:08 PMPost a Comment (0)

What is the direction of interest rates in the near future?

June 23rd, 2009 2:01 PM

As long as the U.S. economy is in recession, rates will move up and down between 4% to 6%. This window of low rates will not last long, somewhere between summer to winter of 2009. When economic indicators point to a recovery, rates will increase to above 6% to cool down inflationary price increases from an over supply of Federal money circulating in the economy.

Posted by Coach Bob Iinuma on June 23rd, 2009 2:01 PMPost a Comment (0)

Why have interest rates increased during the past month?

June 23rd, 2009 1:41 PM

The financial markets reacted with optimism when economic indicators reported to a possible end to the recession. When economic indicators point to an end to this recession, the bond market reacts with lower prices and higher yields: higher interest rates.

Posted by Coach Bob Iinuma on June 23rd, 2009 1:41 PMPost a Comment (0)