Aug 8, 2012 | Mortgage Guidelines
As another signal of an improving U.S. economy, the nation’s biggest banks have started to loosen mortgage lending guidelines.
As reported by the Federal Reserve, last quarter, no “big banks” reported stricter mortgage standards as compared to the quarter prior and “modest fractions” of banks reported easier mortgage standards.
The data comes from the Fed’s quarterly Senior Loan Officer Survey, a questionnaire sent to 64 domestic banks and 23 U.S. branches of foreign banks. The survey is meant to gauge, among other things, direct demand for consumer loans and banks’ willingness to meet this demand.
Not surprisingly, as mortgage rates fell to all-time lows last quarter, nearly all responding banks reported an increase in demand for prime residential mortgages where “prime residential mortgage” is defined as a mortgage for an applicant whose credit scores are high; whose payment history is unblemished; and, whose debt-to-income ratios are low.
Consumers were eager to buy homes and/or refinance them last quarter and 6% of the nation’s big banks said their credit standards “eased somewhat” during that time frame. (more…)
Aug 7, 2012 | Personal Finance
Planning to make a late-August purchase closing? Keep an eye on your calendar. The last Friday of this month coincides with Labor Day Weekend, which may make for a complicated, end-of-month closing.
If you’re planning to close on, or around, August 31, 2012, plan ahead. Leaving anything to the proverbial last minute could delay your closing by hours in a best-case scenario, and by days in a worst-case.
This is because Labor Day is among the most popular vacation times of the year in the real estate, title and mortgage industries and, as Labor Day approaches, it’s increasingly hard to resolve “issues” related to settlement — not all parties are readily available for resolution.
A small closing issue, therefore, can spiral into a major one when you can’t reach your attorney; or, when the title company is short-staffed, for example.
For Massachusetts home buyers currently under contract, and (more…)
Aug 6, 2012 | Around The Home
How well do you conserve water?
The government’s EPA estimates that the average family of four uses 146,000 gallons of water per year, at a cost of $700. With just a few small changes, however, that cost could drop by as much as 28%.
You’ll save on more than just your water bill, too. You may save on Worcester County area taxes.
This is because water management is often handled at the municipal level and as water usage grows, so does the need for costly investment in water treatment and delivery systems. Less usage means lower costs.
You’ll also enjoy lower home energy bills. 25 percent of a home’s energy bill is used to heating water for home use.
So, with the above three benefits in mind, here are three ways to cut your household water usage.
Catch Your Shower Water
Nobody likes to step into a cold shower, and we sometimes run our showers for 5 minutes before stepping in. Even with today’s low-flow shower heads, that’s 10 gallons of water wasted. Instead of allowing pre-shower water to run down the drain, catch it in a bucket, instead. Then use the bucket to water house plants and your garden.
Stop Pre-Rinsing Dishes
Today’s dishwashers are heavy-duty food busters. Don’t pre-rinse dishes in the sink, only to move them to the dishwasher where the job will be duplicated. Instead, use a wet sponge to wipe dishes clean, then place them in the dishwasher. The job will get done just as well. Or, for caked on foods, follow the steps above then start the dishwasher. After 3 minutes, pause the cycle to allow water to sit-and-soak on your dishes. Then, restart the cycle as normal.
Test Your Toilets
A single leaking toilet can spill 60 gallons of water per day and there are several places where leaks can occur. The toilet may have a worn out flapper; or, a damaged gasket under the flush valve; or, a crack in the overflow tube. One clear sign of a leak is having to jiggle the handle to make the toilet stop running. To test for leaks, try “the dye test”. Fill the toilet tank with food coloring or instant coffee to a deep color and wait 30 minutes. If any of the coloring finds it way to the toilet bowl, you know you have a leak.
In addition to the tips above, the EPA keeps a list of water-saving steps on its website. See how many steps you can take to reduce your home water usage.
(Image courtesy : EPA.gov)
Aug 3, 2012 | Mortgage Rates
Mortgage rates couldn’t fall forever, it seems.
This week, for the first time since mid-June, the 30-year fixed rate mortgage rate climbed on a week-over-week basis, moving 6 basis points to 3.55%, on average, nationwide.
According to Freddie Mac, 3.55 percent is the highest average rate at which the benchmark product has been offered in close to 4 weeks.
The Freddie Mac published mortgage rate is available for prime borrowers willing to pay a full set of closing costs plus an accompanying 0.7 discount points.
Discount points are a one-time, upfront mortgage loan fee to be paid at closing where 1 discount point is equal to one percent of your loan size. In this way, a Worcester County area home buyer who pays (more…)
Aug 1, 2012 | Federal Reserve
The Federal Open Market Committee voted to leave the Fed Funds Rate unchanged within its current target range of 0.000-0.250 percent Wednesday. The vote was nearly unanimous.
Only one FOMC member, Richmond Federal Reserve President Jeffrey Lacker, dissented in the 9-1 vote.
The Fed Funds Rate has been near zero percent since December 2008.
In its press release, the Federal Reserve noted that the U.S. economy has “decelerated somewhat” since January. Beyond the next few quarters, though, the Fed expects growth to “remain moderate” and then gradually pick up. (more…)
