Wednesday, March 31, 2010

Mortgage rates might be going up soon!

Here is an email that I received from one of our preferred lenders, - Cummings Financial -

The Federal Reserve mortgage backed securities program ended today. The Fed has invested approximately 1.3 trillion dollars in the mortgage backed securities market to help stabilize the housing and mortgage markets by providing funds to purchase mortgages that Wall Street has been unwilling to purchase due to the housing crisis. As a result of the Feds investment in mortgage backed securities mortgage rates have been held at near record low levels. This has kept the housing market alive during a very difficult period.

Unfortunately, the 1.3 trillion dollar investment was fully funded this week. The Fed does not appear to have any intention of extending this program. In reality, it appears the opposite will occur. There have been comments from the Federal Reserve that the Fed will sell the mortgage bonds they purchased back to the financial markets.

What does all of this mean for consumers that are looking to purchase or refinance their home? Higher Rates...

Why? Because the ultimate buyers of mortgages are Wall Street investors who purchase mortgage backed securities. The housing market is still struggling and there continue to be millions of homes in foreclosure. Therefore, this risk will be priced into the yields investors expect to earn on their investments which means higher rates for mortgage loans for consumers.

Many analysts have predicted mortgage rates would increase by 1/2% shortly after the end of the Feds mortgage backed securities program. In addition, analysts are predicting rates increase from 5% to 6% by summer. This combined the with scheduled termination of the move-up and first time buyer tax credits may have an adverse impact on our housing market.

In closing, mortgage rate volatility will be controlled by the economic news that is released on a daily basis, weekly or monthly basis. This is no different than how the market has operated for years. Therefore, I will return to sending out market updates on a regular basis to keep you informed regarding the current interest rates and what is impacting interest rates.

There has never been a more important time than now to work with an expert with a proven track record. Home buyers and Realtors cannot afford to trust their transaction to anyone in this market. The new rules, regulations, disclosures and complex underwriting guidelines have made home buying a difficult and challenging process. We continue to deliver exceptional service and seamless closing even in this market.

I hope you will encourage your clients to call Lisa or myself to compare rates and programs. More importantly, take advantage of my in-depth mortgage planning. We have dramatically impacted the lives of thousands of families. As a result, we have received approximately 1,500 testimonial letters, cards and notes from our clients expressing their sincere appreciation for our expert advice, exceptional rates and seamless service.

To Your Success,

Scott Cummings, CMPS

President / CEO

Cummings Financial

505.884.8600 office


Lisa Cummings, COO

Cummings Financial

505.884.8600 office

505-362-1338 cell

Very good information!  Please feel free to contact us about real estate at for buying or selling your home.

Monday, March 22, 2010

A gorgeous home in Northern New Mexico

This is an amazing property located just outside of Chama, New Mexico - situated on 25 +/- acres, it is a dream retreat with river frontage.

Contact us today for more information

Friday, March 19, 2010

Where i would like to be right now...I'm getting spring fever!

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one of the best times ever - what a glorious place and it's whale season now....

Thursday, March 04, 2010

Balloons over New Mexico

Wonderful display of balloons over our New Mexico!


NM Balloons

NM Balloons A gorgeous display of balloons against the New Mexico Sky - enjoy!

Wednesday, March 03, 2010

Buying homes 'as is' - Foreclosures and Fixers

In today's market we are seeing alot of Foreclosures, As-Is 'fixers' and our customers may think this is a great way to purchase a home. In some cases, it can be. However there are things to be aware of when venturing into this territory. Most buyers today are buying homes with mortgage loans which have stricter guidelines than ever before. When purchasing a foreclosure or fixer upper, the bank/owner will often request that the buyer pay for all of their own due diligence inspections, and that no repairs will be made on the property if discoveries are made due to these inspections. There are problems with this part of the process which often do not come to light until the buyer is well into the purchasing process. Lisa Cummings, of Cummings Financial advises this: "There are many homes on the market that seem like great deals due to foreclosure or other adverse situations the seller may be facing. Many times when a property owner faces "tough" times, maintenance and repairs on the home are stopped, and these homes are not always in perfect condition. When you are considering buying one of these homes, your inspection of the property is more important than ever. However as the mortgage market tightens, lenders are also spending more time with due diligence regarding property appraisals. Lenders are more thorough in underwriting new loans that are being used to buy these types of properties, especially if the new buyer is using VA or FHA financing. Purchase agreements are being examined by underwriters to see what type of inspections are being requested to determine any possible "red flags" with the property. Every financed purchase transaction will require an acceptable appraisal, and underwriters are reviewing appraisals more in depth as well. If any note is made by the appraiser about anything pertaining to the condition of the home such as possible roof issues, age of the heater, etc, underwriters are requesting additional inspection of these items and possibly additional repairs to be completed prior to closing. Underwriters are also examining appraisal photos. If they see in the photo a spot that looks like a roof leak on a wall or ceiling, they may require additional inspections, repairs and certifications prior to closing. It is a good idea to consider any possible inspection and repair costs as part of your costs for the property since the lender will require all systems (plumbing, heating, roof, structure, etc) to be in acceptable condition before they will allow you to close on your purchase" I specialize in estate sale properties and I often advise the seller to price the home for a 'cash only' sale due to the fact that this financing glitch will only make the process more cumbersome for them. I have not seen issues with finding cash buyers. I have, however, seen numerous issues arising out of the more stringent lender and appraisal requirements. So, before you set out to buy the bank owned property or fixer-upper, be aware and informed!

Tuesday, March 02, 2010

REALTOR® Magazine-Daily News-Flood Insurance Program Is in Jeopardy

This action has huge implications to the stabilizing of our home sales and related economy. We need to find a way to make sure that this is fixed. REALTOR® Magazine-Daily News-Flood Insurance Program Is in Jeopardy

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