The federal government is investigating a number of predatory lending schemes targeting thousands of veterans who have Veterans Administration mortgages. Officials say the scams aim to convince borrowers to repeatedly refinance, ultimately paying more on their loans. Some lenders also are being accused of using teaser interest rates, “cash out” windfalls, and lower monthly payments, using marketing materials that sometimes resemble Department
Homeowners who earn a high income are showing a preference for the suburbs—and even the far-out “exurbs”—over downtown living. A Census Bureau analysis of the 53 largest U.S. metros shows that only 3 percent of homeowners employed full-time who make more than $75,000 annually live downtown, while 11.4 percent live in inner-ring neighborhoods. But 14 percent live in the exurbs, and 71.5 percent are in the suburbs.In 2015, a $75,000 salary
Retiring baby boomers are less likely to be mortgage-free compared to people their age in previous generations, according to Fannie Mae. That could hurt boomers’ financial security and exacerbate the housing affordability crisis.Slightly less than 50 percent of the oldest baby boomer homeowners in 2015 were mortgage-free, 10 percentage points lower than the number of Silent Generation homeowners who were in the same age group in 2000 and mortga
The share of households considered burdened by high rents is dropping, according to the 2017 National Rental Housing Landscape, a report published by New York University’s Furman Center for Real Estate & Urban Policy. But that doesn’t necessarily mean landlords are slashing rents.Researchers say the reason for the drop is mostly due to the higher number of wealthier families who are opting to rent. This has allowed landlords to raise pri
Some desperate home buyers who aren’t able to save enough for a down payment are turning to crowdfunding.And mortgage lenders are making it easier for buyers to do so. CMG Financial, a mortgage provider, launched HomeFundMe, an online platform to allow borrowers to crowdfund the down payment of a home purchase without fees. The crowdfunding platform also has the backing of mortgage finance giants Fannie Mae and Freddie Mac.Saving for the down
The 30-year fixed-rate mortgage inched upwards this week, averaging 3.85 percent. It’s the highest average in six weeks, Freddie Mac reports.“After holding steady last week, rates ticked up this week,” says Sean Becketti, Freddie Mac’s chief economist. “The 10-year Treasury yield rose 8 basis points, while the 30-year mortgage rate increased 2 basis points to 3.85 percent.”Freddie Mac reports the following national averages with mortg
Seller-financed deals are increasingly coming under scrutiny. The Consumer Financial Protection Bureau is investigating some larger investors using seller financing in real estate deals, accusing some investors of abusing the practice by evicting buyers for missing just a single payment or selling homes at the end of the agreements that are in complete disrepair.Legislators in three Midwestern states—Ohio, Illinois, and Michigan—are targeting
Keeping a home warm during the colder months of the year can prove to be expensive. With energy costs on the rise, many households are facing higher energy bills each year.Fixr.com, which provides "Cost Guides" of estimates to common household remodeling projects, highlights five projects to help increase a home’s energy efficiency and keep utility bills lower. (Fixr.com also provides cost estimates below of the projects listed.)1. Find unor
Having a salary over $100,000 is the standard some clients face in certain areas of the U.S. when it comes to homebuying. NAR’s quarterly Metropolitan Median Area Prices and Affordability Indexfrom the second quarter of 2017 helped CNBC identify the 10 cities with this high income necessity. The data included in the index assumes a 4 percent mortgage rate for all areas, as well as a monthly principal and interest payment limited to 25 percent
As home prices heat up across the country, buyers looking to lower their monthly mortgage payment are being lured to adjustable rate mortgages.ARM originations surged over 40 percent in the second quarter compared to the first, according to Inside Mortgage Finance data.ARMs are currently offering lower interest rates than fixed-rate mortgages. The average 30-year fixed-rate mortgage was 4.11 percent last week; a five-year ARM averaged 3.38 per
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