Mortgage Rates continue to trade at all time lows on the heels of news from The Fed that they remain committed to keeping rates low until midyear.
Friday’s Highly anticipated Jobs Report could have an impact on where rates are heading going forward.

Vincent Demetrio
Director
NMLS #22907

FHA is reducing annual FHA mortgage insurance premiums by 0.5 percentage point from 1.35 percent to 0.85 percent, an average savings of $900 annually for new borrowers.
Lowered premiums will help more than 800,000 homeowners save on their monthly mortgage costs and enable up to 250,000 new home buyers to purchase a home.
These steps will help support home sales, lower housing expenses for affected households, and help bring more balance to the housing market.

By James Young, Sr. Loan Consultant
SI Mortgage Group

Staten Island, NY – When a marriage ends in divorce, the lives of those involved are changed forever. During this time of upheaval, one thing that shouldn’t have to change is the credit status you’ve worked so hard to achieve.

Unfortunately, for many, the experience is the exact opposite. Unfulfilled promises to pay bills, the maxing out of credit cards, and a total breakdown in communication frequently lead to the annihilation of at least one spouse’s credit. Depending upon how finances are structured, it can sometimes have a negative impact on both parties.

The good news is it doesn’t have to be this way. By taking a proactive approach and creating a specific plan to maintain one’s credit status, anyone can ensure that “starting over” doesn’t have to mean rebuilding credit.

The first step for anyone going through a divorce is to obtain copies of your credit report from the 3 major agencies: Equifax, Experian®, and TransUnion®. It’s impossible to formulate a plan without having a complete understanding of the situation. (Once a year, you may obtain a free credit report by visiting www.AnnualCreditReport.com.) 

Once you’ve gathered the facts, you can begin to address what’s most important. Create a spreadsheet, and list all of the accounts that are currently open. For each entry, fill in columns with the following information: creditor name, contact number, the account number, type of account (e.g. credit card, car loan, etc.), account status (e.g. current, past due), account balance, minimum monthly payment amount, and who is vested in the account (joint/individual/authorized signer). 

Now that you have this information at your fingertips, it’s time to make a plan.

 There are two types of credit accounts, and each is handled differently during a divorce. The first type is a secured account, meaning it’s attached to an asset. The most common secured accounts are car loans and home mortgages. The second type is an unsecured account. These accounts are typically credit cards and charge cards, and they have no assets attached.

When it comes to a secured account, your best option is to sell the asset. This way the loan is paid off and your name is no longer attached. The next best option is to refinance the loan. In other words, one spouse buys out the other. This only works, however, if the purchasing spouse can qualify for a loan by themselves and can assume payments on their own. Your last option is to keep your name on the loan. This is the most risky option because if you’re not the one making the payment, your credit is truly vulnerable. If you decide to keep your name on the loan, make sure your name is also kept on the title. The worst case scenario is being stuck paying for something that you do not legally own.

In the case of a mortgage, enlisting the aid of a qualified mortgage professional is extremely important. This individual will review your existing home loan along with the equity you’ve built up and help you to determine the best course of action.

When it comes to unsecured accounts, you will need to act quickly. It’s important to know which spouse (if not both) is vested. If you are merely a signer on the account, have your name removed immediately. If you are the vested party and your spouse is a signer, have their name removed. Any joint accounts (both parties vested) that do not carry a balance should be closed immediately.

If there are jointly vested accounts which carry a balance, your best option is to have them frozen. This will ensure that no future charges can be made to the accounts. When an account is frozen, however, it is frozen for both parties. If you do not have any credit cards in your name, it is recommended you obtain one before freezing all of your jointly vested accounts. By having a card in your own name, you now have the option of transferring any joint balances into your account, guaranteeing they’ll get paid.

Ensuring payment on a debt which carries your name is paramount when it comes to preserving credit. Keep in mind that one 30-day late payment can drop your credit score as much as 75 points. It is also important to know that a divorce decree does not override any agreement you have with a creditor. So, regardless of which spouse is ordered to pay by the judge, not doing so will affect the credit score of both parties. The message here is to not only eliminate all joint accounts, but to do it quickly.

Divorce is difficult for everyone involved. By taking these steps, you can ensure that your credit remains intact. 

When it comes to a secured account, your best option is to sell the asset. This way the loan is paid off and your name is no longer attached. The next best option is to refinance the loan. In other words, one spouse buys out the other. This only works, however, if the purchasing spouse can qualify for a loan by themselves and can assume payments on their own. Your last option is to keep your name on the loan. This is the most risky option because if you’re not the one making the payment, your credit is truly vulnerable. If you decide to keep your name on the loan, make sure your name is also kept on the title. The worst case scenario is being stuck paying for something that you do not legally own.

In the case of a mortgage, enlisting the aid of a qualified mortgage professional is extremely important. This individual will review your existing home loan along with the equity you’ve built up and help you to determine the best course of action.

When it comes to unsecured accounts, you will need to act quickly. It’s important to know which spouse (if not both) is vested. If you are merely a signer on the account, have your name removed immediately. If you are the vested party and your spouse is a signer, have their name removed. Any joint accounts (both parties vested) that do not carry a balance should be closed immediately.

If there are jointly vested accounts which carry a balance, your best option is to have them frozen. This will ensure that no future charges can be made to the accounts. When an account is frozen, however, it is frozen for both parties. If you do not have any credit cards in your name, it is recommended you obtain one before freezing all of your jointly vested accounts. By having a card in your own name, you now have the option of transferring any joint balances into your account, guaranteeing they’ll get paid.

Ensuring payment on a debt which carries your name is paramount when it comes to preserving credit. Keep in mind that one 30-day late payment can drop your credit score as much as 75 points. It is also important to know that a divorce decree does not override any agreement you have with a creditor. So, regardless of which spouse is ordered to pay by the judge, not doing so will affect the credit score of both parties. The message here is to not only eliminate all joint accounts, but to do it quickly.

Divorce is difficult for everyone involved. By taking these steps, you can ensure that your credit remains intact.

Michael Scarimbolo- Branch Manager  via Total Mortgage Services

Billionaire investor Warren Buffett today said he sees strength ahead for US economy and predicts US consumers will not see current mortgage rates “for years to come.”

Surprise Jobs Data:

Current mortgage rates today are reacting to a surprise surge in new job creation and a reduction in new claims for unemployment benefits.  While the ADP Employment Change report, which was released at 8:30 AM ET, has not always been a true predictor of the Non-Farm Payrolls report (released tomorrow), the ADP report typically is less intensive in its movement either positive or negative.  This suggests that the Non-Farm Payroll report tomorrow could show substantial job gains above the +157,000 the ADP report showed today.  For mortgage consumers seeking a home loan for a purchase or refinance this suggests that current mortgage rates would be heading higher.

Job strength hurts mortgage rates:
Also released this morning was the weekly Jobless Claims report which indicated that 11,000 fewer Americans files for first time unemployment benefits this week than last.   This was much greater than the expected 3,000 person drop from last week.  If this is truly a new trend, it is great news for the US economy, but not great news for mortgage rates.

Retail sales show growth:
Retail sales also appear to be gaining strength according to reports today of June sales from major retail companies.  The US economy is largely dependent on the consumer spending money for its strength and these reports are also supportive of our economy gaining strength.

Debt ceiling talks at White House:
As we inch closer to the August 2 deadline to extend the US debt ceiling, President Obama is hosting Congressional leaders for talks today at the White House.  Reports suggest that the President is willing to increase spending cuts, including some changes to Social Security, while Republicans are willing to consider reforms to the tax code that would close loop-holes and raise revenue.

By James Young, Sr. Mortgage Consultant
SI Mortgage Group Inc.

Staten Island, NY– If you’ve been watching the economic news, you’ve probably noticed that market experts and traders have been keeping a close eye on the Commerce Department’s Personal Spending and Personal Income reports. Obviously, those reports provide insight into the health of our economy, but did you know they also influence home loan rates? That’s right, personal spending can actually influence the interest rates that are available when you purchase or refinance a home.

Here’s why. It has to do with something called the velocity of money. Even though the government keeps pumping money into the system, nothing happens until that money is spent or lent – and passes from one hand to another or one business to another. The speed at which this money passes between parties is called the velocity of money.

With the job market still very sluggish, consumers aren’t spending much money these days, and businesses are still reluctant to spend money to make investments in their business. With the present velocity at low levels, inflation remains subdued and that’s good for home loan rates. That’s because rates are tied to Mortgage Bonds and inflation is the archenemy of Bonds, so low inflation is good for Bonds and rates. However, once velocity increases, the excess money in the system will cause inflation – which is bad for rates, since even the slightest scent of inflation can cause home loan rates to worsen.

While we certainly want to see better economic recovery news in the near future, we have to remember that there’s an inverse relationship between good economic news and Bonds and home loan rates. Weak economic news normally causes money to flow out of Stocks and into Bonds, which helps Bonds and home loan rates improve. Strong economic news, on the other hand, normally has the opposite result.

Currently, home loan rates are at a historically low level, but that situation won’t last forever. That means now is an ideal time to purchase a home or refinance before the velocity of money – and rates – change. If you or anyone you know would like to learn more about the current economic situation and how to take advantage of historically low home loan rates, then please contact me.

James Young

Sr Loan Consultant

Taking the step into home ownership is one of the most important financial decisions a person will make in their lifetime. There are many factors to consider when embarking on this venture. Literally hundreds of loan programs are available, and it is important to find the one that best fits your personal long-term goals.

First and foremost, you must have a mortgage consultant in your corner that is willing to take the time to know what your long-term goals are. Communication is the key factor here.

Curious prospective home buyers sometimes turn to Internet-based services just to see what current interest rates are. But a faceless web site will not take the prospect’s future financial planning into consideration or guide the potential borrower through the many nuances of the loan process. When shopping for a home loan, be wary of web-based services that offer programs to reel prospects in with attractive rates that are based upon unrealistic time frames.

If a lender is offering a terrific rate based on a 10-day lock-in period, it is unlikely that the potential home owner would actually be able to find their dream home, get through the negotiation process and win approval from a lender within such a short period of time. This is called short-pricing, and when it comes time to close the transaction, the rate that was originally offered is simply no longer available. As a result, the unfortunate prospect is bulldozed into a loan program with a higher interest rate.

It is highly unlikely that a qualified loan originator whose business is based upon referrals will use unscrupulous tactics such as this to get new customers in the door!

Once you have found a mortgage consultant that you feel comfortable working with, lay your goals out on the table because it will have a tremendous impact on choosing a loan program that meets your specific needs. One of the most important factors to consider is how long you wish to borrow the money for. For example, if you know you will only be in the home for five years, it wouldn’t make sense to opt for a 30-year loan program or pay points up front to secure a lower interest rate. You would not be in the home long enough to benefit from such action.

Your mortgage consultant should be able to narrow down a selection of programs based on the information that you have provided, and present you with an easy-to-read spreadsheet that clearly defines viable options for your interest rate and amortization schedule, monthly payment and any potential savings you may realize by paying points up front.

Moreover, a reputable loan originator will not hesitate to share this information with your tax consultant or financial planner so they may offer additional feedback on your behalf.

Home ownership imparts a rewarding vehicle for building wealth and a strong financial future. The mortgage consultant that you choose should be there not only when your loan closes, but should also provide you with ongoing service to assist you in managing that debt over time.

S.I. Mortgage Group is making a difference by teaming up to participate in the American Cancer Society’s Relay For Life of Staten Island on Saturday, June 11^th at 3:00pm at Wagner College.  It is an all-day event for the entire family which all are welcome to attend.
At the event, our team will take turns walking around the track to raise money and awareness to help the American Cancer Society create a world with less cancer and more birthdays. 
Saving lives from cancer starts one team, one participant, and one dollar at a time. Our team is doing our part to make sure that cancer never steals another year of anyone’s life.  The impact we can make together is much greater than what any of us could do alone!

 Anyone interested in donating to Relay For Life on behalf of our team can contact Sabrina DiMaggio by phone at 718-979-7700 x153 or by email at DiMaggioSabrina@aol.com.

S.I. Mortgage Group is making a difference by teaming up to participate in the American Cancer Society’s Relay For Life of Staten Island on Saturday, June 11^th at 3:00pm at Wagner College.  It is an all-day event for the entire family which all are welcome to attend.
At the event, our team will take turns walking around the track to raise money and awareness to help the American Cancer Society create a world with less cancer and more birthdays. 
Saving lives from cancer starts one team, one participant, and one dollar at a time. Our team is doing our part to make sure that cancer never steals another year of anyone’s life.  The impact we can make together is much greater than what any of us could do alone!

 Anyone interested in donating to Relay For Life on behalf of our team can contact Sabrina DiMaggio by phone at 718-979-7700 x153 or by email at DiMaggioSabrina@aol.com.

I am proud to announce the launching of the new S.I. Mortgage Group website!!