By SCOTT KIMBLER Times have changed when it comes to the home buying process. The age-old way of buying a first-time home, or even a larger home was to save to have 20% down and sign on to a 30-year-mortgage. Other parts of the equation included maintaining a high credit score and paying off debts so you could get a good rate. But now some people are finding they need to be re-educated about the process of home buying in their search for the best home and the best price. Elizabeth Rose is with Mortgage 300 in Dallas, TX and says even though interest rates have gone up and will continue to, home ownership is still something to strive…
By TYRONE TOWNSEND Renters continue to engage in bidding wars as Americans struggle to find affordable places to live. The demand for rental properties is growing due to rising mortgage rates, increasing inflationary concerns, and supply chain problems. Michael Scuito is a Savannah, Georgia, resident and an Army veteran who says he had to rearrange his budget to fit the current rental market. In 2020, he moved into a two-bedroom, two-bath apartment and was paying $1,575 a month. Later that year, the price was raised by over $200. “I live in one bed and one bath, paying $1650 a month. That’s not including utilities. I’ve constantly rearranged my budget to adjust to raising rent, food, and gas prices,” Scuito told…
By KIMBERLEY HAAS The Breakers mansion is a grand summer “cottage” that symbolizes the Vanderbilt family’s social and financial pre-eminence in the Gilded Age and you can tour this luxurious estate by the sea. Built between 1893 and 1895 at the cost of over $7 million, this National Historic Landmark located at 44 Ochre Point Avenue in Newport, RI, was the summer home of Cornelius Vanderbilt II. He became the president and chairman of New York Central Railroad in 1885. The Vanderbilt family was one of the wealthiest and most prominent families in America. According to The Preservation Society of Newport County, the Breakers was everything a millionaire of the Gilded Age could want in a summer getaway with its…
By KIMBERLEY HAAS Officials at the US Department of Justice say a Michigan real estate consultant and accountant will serve 18 months in prison after he filed false tax returns with the Internal Revenue Service. Steven Mills, of Harbor Springs and formerly of East Lansing, was retained by a corporation to supervise several real estate agents. Between 2012 and 2015, Mills demanded and received about $577,000 in kickbacks which he did not report on his tax returns, according to officials. Mills did not report all of the income he earned when he operated Mills Real Estate Consulting LLC. Officials say he did not report $100,000 he received from a real estate developer between 2013 and 2015. IRS-Criminal Investigation led the…
By CHUCK GREEN Home sweet… multifamily home construction? If, well, the spare bedroom fits. And that it seems to do in light of a new report from Construction Coverage showing a spike in construction of multifamily homes in the U.S. With a jump in multifamily housing projects, home building in the U.S. catapulted to a nine-month high last December, according to Reuters. There was a 2.4% hike to a rate of 737,000 units among multifamily homes under construction. “As long as supply chains remain stressed, builders will struggle to complete projects, slowing sales and likely limiting growth in the supply of new homes,” said Ben Ayers, Senior Economist at Nationwide in Columbus, Ohio. Earlier in the year, addressing the International Builders’ Show in…
By KIMBERLEY HAAS As 94% of surveyed lenders agree that appraisal modernization efforts are valuable, two leaders who have witnessed the industry changing say new technology is making things possible that could have only been imagined in the past. Dean Kelker, Senior Vice President and Chief Risk Officer at SingleSource Property Solutions, and Todd Rasmussen, President of Equity Valuation Partners, recently sat down for interviews with The Mortgage Note, and this is what they had to say. “The lending process itself has changed quite a bit. It is certainly much faster than it was years ago largely because of the technology that’s been driving it,” Kelker said. “Most recently, largely due to the low interest rates, we have had a…
By KIMBERLEY HAAS A U.S. Congressman serving the 8th district of Texas says housing inflation is crushing the American dream for families. During a hearing, Ways and Means Republican Leader Rep. Kevin Brady said American families and workers are finding that President Joe Biden’s economy is “cruel.” “Working women haven’t had it this bad in decades. The dangerous baby formula shortage, rising crime, and inflation, and now housing they can barely afford to live in. Just as with crushing gas prices, Democrats in Washington are blaming everyone under the sun for the cruel rise in housing costs: builders, local investors and developers who make the construction of new homes and neighborhoods a reality,” Brady said. He added, “Republicans have held…
By TYRONE TOWNSEND The Federal Reserve has indicated that the central bank views inflation as a national emergency, with markets expecting a 0.75 percent interest rate rise. However, the Fed’s policy measures could come at a high cost, notably in the housing market. Low mortgage rates and a lack of housing inventory during COVID-19 lockdowns sent home prices skyrocketing during the last two years. The housing market is cooling as mortgage rates have gone up and even surpassed 6 percent. Although this may be an acceptable short-term price to pay in the fight against inflation, it will cause future supply-chain issues after inflation is under control. Before the pandemic, a six-month supply of homes for sale was considered a sign…
By TYRONE TOWNSEND Rising mortgage rates may not have brought the housing market to a halt just yet, but experts are predicting a cooldown that will come in waves and hit different areas of the country at different times. As home prices begin to level off, the 30-year mortgage rate is moving between 5% and 6%. At the same time, consumer confidence is dwindling, and economic statistics indicate the housing industry is cooling after its frenzied surge during the Covid-19 pandemic. As a result, several Wall Street analysts are revising their outlooks for the homebuilding sector and downgrading some equities. “The housing market faces both demand-side and supply-side challenges,” Robert Dietz, chief economist at the NAHB, said in a statement.…
By KIMBERLEY HAAS The newly named Chief Executive Officer for Bonzo said in a recent interview that a secret to success is building work around your life. “What do you love to do? What are you interested in?” Chad Jampedro asked while talking about what his advice to young people is. “Choose your obsession,” Jampedro said. “You can have it all.” Jampedro sat down with The Mortgage Note after transitioning from home lending to relationship management. He is the former President of GO Mortgage, according to LinkedIn. Jampedro was a customer and investor at Bonzo before being named CEO this spring. He described the stress related to home lending during COVID. “It was an all-out sprint for two years,” Jampedro…
