Tax Breaks for Mortgage Insurance

In an article posted Tuesday, CNN shared a list of "temporary" tax breaks that have been extended into 2014, including breaks for teachers, commuters, and parents of college students. CF Funding is happy to share two great tax breaks for homeowners, including deductions for mortgage insurance premiums:

1. For those who may have purchased a home with a small down payment, and therefore were
required to pay mortgage insurance, this break would allow you to deduct the cost of your premiums (if you itemize your deductions).

2. For those who have foreclosed on a home, or sold their home for less than what is owed, this tax break allows you to exclude that remaining debt from your income. Normally, the IRS would count the remaining debt as taxable income.

Another great tax break worth noting is that "commuters may reduce their pre-tax income to account for their commuting costs... those who drive to work and pay for parking are allowed to exclude more (250 per month) than those who use mass transit (130 per month)."

According to CNN, the bill has been sent to President Obama and is awaiting signature.

Self-employed buyers can now Qualify using bank Statements!

Contact a CF Funding Loan Specialist for more information about this great program! Call 888-344-4080 or visit www.cffunding.com today.

Loan approval is subject to credit approval and program guidelines. Not all loan programs available in all states for all loan amounts. Interest rates and program terms subject to change without notice. Residential M ortgage Licensee # Illinois M B 0005978, California 6031932, Colorado, Tennessee 11 4055, Florida M LD1082, Virginia MC-5825, Texas. Company NM LS # 202670.

Remodelers' Outlook Positive, Real Estate Changes on the Horizon

CF Funding is happy to share that remodelers’ ratings of current market conditions have increased to a score of 56 in the second quarter of 2014. In the NAHB’s quarterly survey, the Remodeling Market Index (RMI) rose three points, “reclaiming the territory it had lost during what was likely a weather-related dip in the first three months of the year,” according to a blog post today by Paul Emrath. A score of 50 or higher is positive, as more than half of remodelers in the survey reported high market activity, a great indicator for future activity.

The survey measures current conditions with 3 factors: major additions/alterations, minor additions/alterations, and maintenance /repair. In Q2 2012 scores were as low as 42 in some categories, and in Q2 2014 all scores were above 53. Future market indicators such as calls for bids, amount of work committed for the next 3 months, backlog of remodeling jobs, and appointments for proposals were also all above 53. Improvement in the jobs market has impacted the RMI, as homeowners have regained equity and confidence in the housing market has increased.

In other real estate news today, Realtors may be surprised to hear that Zillow Inc. is seeking to purchase Trulia Inc., and the two rival real estate websites may combine in the near future. The two websites are used by realtors, homebuyers, and home sellers to list homes and apartments for sale or rent. The companies make money by charging realtors and homesellers a fee for advertising. In June, the sites had over 85 million visitors and acquired almost 90 percent of traffic out of the 15 most visited real estate sites. According to Bloomberg Businessweek, Zillow may pay up to 2 billion dollars to acquire its rival site, and two-thirds of the price may be paid with Zillow stock. Both companies saw a rise in stock today, with Zillow rising more than 15 percent and Trulia rising 32 percent. Trulia’s revenue is expected to increase 76 percent this year to reach 253 million dollars, and Zillow’s revenue is expected to increase about 58 percent, reaching 311 million dollars.

Rumors of the two companies merging have not been publicly confirmed by members of either company. Regardless of the outcome, CF Funding hopes to see the sites continue to support realtors, FSBOs, and homebuyers as they buy and sell properties. Realtors and other home sellers who need assistance using these online tools to list properties may contact CF Funding today by calling 630-328-8905.

Foreclosure Activity Decreases to Lowest since 2006

CF Funding is happy to share that foreclosure activity has been reported at its lowest levels since before the housing crash. In the first half of 2014 (January through June) there were 613,874 foreclosure filings, which is a 23 percent decrease from the first half of last year. As CF Funding mentioned earlier this month on their blog, the Obama administration is taking steps to continue to decrease foreclosures, and the lender expects that more improvement is to come in the next few years as the economy improves.

The Midyear 2014 U.S. Foreclosure Market Report, released this week by RealtyTrac, revealed that one in 214 homes in the U.S. reported a foreclosure in the first six months of this year (about 0.47 percent). Foreclosure activity for June totaled 107,194 properties, which is down 2 percent from May 2014 and down 16 percent from a year ago. Ten states reached their lowest levels of foreclosure activity since the housing crash in 2006, including Texas, Georgia, Colorado, Tennessee, Arizona, and Nevada. CF Funding is licensed in Texas, Florida, and Colorado, and the lender was happy to see such high foreclosure improvement in those states.

Only nine states saw an increase in foreclosure activity in the first half of 2014 in comparison to the first half of 2013. Those states include New Jersey (up 54 percent), Maryland (up 18 percent), and Iowa (up 10 percent).

It may be disheartening to see that Illinois is ranked at the country’s third highest foreclosure rate in the first half of 2014, at one in every 123 housing units. However, Illinois has a longer foreclosure filing process than many other states in the country. This means that although foreclosures are recovering in Illinois, the statistics reporting a decrease in filings may lag behind other states by a few months. CF Funding is happy to share that Illinois foreclosure activity did decrease 16 percent in comparison to the second half of 2013, and 32 percent from a year ago. The Chicago metro area also saw a 30 percent decrease in foreclosure activity in the first half of 2014 compared to a year ago.

Those who are in danger of foreclosure should contact CF Funding today to take advantage of free credit repair services with a refinance. The lender has assisted thousands of homeowners to regain positive equity in their homes. Call 888-344-4080 or visit www.cffunding.com today. 

Has the American Dream Evolved?

CF Funding has helped many families achieve the dream of homeownership over the past 14 years. As the Independence Day holiday weekend has come and gone, CF Funding  evaluates what other factors are considered to be a part of “ the American Dream.” Does the dream refer to a shiny car, a large family, or a 3-figure salary? According to James Adams, who coined the term, “The American Dream is that of a land in which life should be better and richer and fuller for everyone, with opportunity for each according to ability or achievement… It is not a dream of motor cars and high wages merely, but a dream of social order in which each man and each woman shall be able to attain to the fullest stature of which they are immediately capable, and be recognized by others for what they are.”

A glance at recent economic news may indicate that the American Dream is out of reach in present day. College graduates are having trouble finding jobs and are often living at home with parents. Recovery from the recession is slower than expected in many markets.  However, a majority of Americans have achieved the American Dream, in regards to the dream of homeownership, education, and job opportunities, says the DDB of North America. The study revealed that 66 percent of US adult respondents have been able to own a home in their lifetime, 78 percent were able to obtain a good education, and 74 percent were able to find a decent job in their lifetime , yet only 40 percent described themselves as living the American Dream. The reason Many Americans remain pessimistic may be that the American Dream has evolved.

Factors such as “buying the car of one’s dreams” at 35 percent and “making a lot of money” at 25 percent were rated less easy to attain by respondents. However, factors that are less related to wealth such as “decent health and medical care,” “feeling relatively safe, “ being treated fairly,” and “having enough food to eat” rated closer to the 80-90 percent ranges. Are Americans less grateful than in previous decades, or has something else changed? According to Mosche Cohen, achieving and maintaining the American dream “have become so difficult that people are not enjoying it.” People are trying to “shoehorn themselves into this concept of the American dream, and they are losing the freedoms it’s supposed to provide… you take a step back and you say things are getting better. Are they enough? Never, because life is about growing higher and higher, but things are getting better.”

CF Funding agrees that the economy is improving, and will continue to improve in the coming years. The dream of homeownership is becoming more easy to attain, especially for first-time homebuyers and veterans who can receive up to $10,000 in down payment assistance from programs like IHDA’s Welcome Home Illinois. For more information on these programs, contact CF Funding at 888-344-4080 or www.cffunding.com.

Purchase and Refinance Applications Increase

CF Funding shares positive news for the housing market today, as both refinance and purchase applications have increased for the week ending June 6. The Market Composite Index by the MBA reported yesterday that mortgage applications increased by 10.3 percent last week, which is a 22 percent increase from the previous week (on a seasonally adjusted basis). Readers should note that Memorial Day fell on the previous week, however, data was adjusted to reflect the holiday.  

The refinance index saw an increase of 11 percent from the previous week, and the purchase index saw an increase of 9 percent from the previous week, on a seasonally adjusted basis. The purchase index increased by 19 percent compared to the previous week on an unadjusted basis. However, unadjusted purchases were still 13 percent lower than the same week last year. CF Funding is confident that both purchase and refinance indexes will continue to rise as the housing market improves this year.

Refinances are still representing a large percent of mortgage activity, as the refinance share increased to 54 percent on the index last week, from 53 percent the previous week. Adjustable-rate mortgages were unchanged, representing 8 percent of total applications on the index. Interest rates increased slightly last week, as the reported 30-year fixed contract interest rate (for loans $417,000 or less) was 4.34 percent, up from the previous week’s 4.26 percent. Jumbo 30-year fixed rates also increased, at 4.27 percent last week in comparison to the previous week’s 4.22 percent.

The average interest rate reported for 30-year FHA loans increased slightly, from 3.99 percent to 4.06 percent. 15-year fixed-rate mortgage interest rates also increased from 3.39 to 3.43 percent. CF Funding is pleased to see that the increase in interest rates has not slowed down applications, as rates are still historically low and home affordability is rising. As seen in the graph, current rates near 4.5 percent are much lower than rates seen 5 years ago near 5.5 percent.

Today, rates saw a slight decrease with the best-execution 30 year fixed rate mortgage near 4.21 percent, in comparison to yesterday’s 4.25 percent. The 52-week low is about 3.97 percent, according to Mortgage News Daily, and the 52 week high is about 4.85 percent. Those interested in mortgage rate updates may find up-to-date information through the CF Funding website at www.cffunding.com/index.php/mortgage-rates.

Consumers Believe It Is a Good Time to Buy and Sell Homes

CF Funding is happy to share that consumer optimism has continued to rise in Fannie Mae’s April 2014 National Housing Survey, as 42 percent of respondents now believe it is a good time to sell a home. This is the third consecutive month of increases, reaching an all-time survey high. Experts predict an increase in housing activity due to these results, as well as the positive jobs data released this week and decrease in mortgage rates.

The monthly housing survey evaluates consumer attitudes in regards to homeownership, renting a home, the economy, and household finances. According to the survey, the average 12 month home price expectation rose to 2.9 percent, up from 2.9 percent last month. The percentage of respondents who believe home prices will rise in the next 12 months was at 50 percent, and the percentage who believe home prices will decrease was at an all-time survey low of 5 percent. The percentage of respondents who believe mortgage rates will rise decreased to 52 percent. Those who believe rates will go down has increased from 3 percent to 7 percent. The percent of respondents who believe it is a good time to buy a home stayed the same this month at 69 percent.

CF Funding is not surprised that the number of respondents who believe it is a good time to sell has risen by 4 percent to 42 percent, as the Spring season always brings out more buyers and sellers andmortgage rates are looking great. The fact that consumers believe rental prices will increase in the next 12 months may also affect the “good time to sell” factor. The percentage of respondents who believe the economy is on the right track has increased from 33 to 35 percent over the past month, and 14 percent expect their personal finances to improve over the next 12 months, in comparison to last month’s 12 percent. CF Funding is pleased to share that 25 percent of respondents say their household income is significantly higher than 12 months ago, up 4 points from last month.

According to Doug Duncan, senior vice president and chief economist at Fannie Mae, “Our April survey results suggest that consumer confidence is moving in a positive direction… consumer attitudes about the current home selling environment have improved and now are at the most favorable level we’ve seen in the survey’s four-year history. Consistent with Friday’s upbeat jobs report, concern about job loss among employed consumers also has hit a record survey low. These results are in line with our expectations for increased housing activity and gradual strengthening of the housing market going into the spring and summer selling season."

CF Funding will keep readers updated on the state of the housing industry as future housing surveys are released. To follow the lender on Facebook, visit www.facebook.com/cffundingcorp.  To view last months’ survey results, visit http://cffunding.com/index.php/news/consumer-attitudes-are-positive-in-march-2014-housing-survey/ .

Home Prices Rise in Corelogic Report

originally posted 5-6-14 at www.cffunding.com/index.php/news/home-prices-rise-in-corelogic-report/

Today the Home Price Index by Corelogic was released, revealing an 11.1 percent increase in home prices from March 2013 to March 2014. CF Funding has previously reported that home price increases such as these allow homeowners to regain equity in their homes, a great sign of economic improvement. Home prices have now been rising for 25 months on a year-over-year basis, and are expected to continue to rise into April on the HPI. From February to March, the HPI increased 1.4 percent including distressed sales (or 0.9 percent excluding distressed sales).

Although prices have been rising for over 2 years, current home prices are still about 16 percent below their peak seen in April 2006. Excluding distressed sales, home prices are about 11.6 percent below peak prices. Corelogic predicts that home prices, including distressed sales, will increase 0.8 percent month over month from March to April. According to Anand Nallathambi, president and CEO, “Home prices continue to rise across the nation, but affordability, tight credit and supply concerns are becoming an increasing drag on purchase market activity. In many markets—especially major metro areas like Los Angeles, Atlanta and New York—home prices are being driven up at double-digit rates fueled by a lack of inventory and record levels of cash purchases.”

All states had year-over-year price increases in March (excluding distressed sales) and 23 states plus the District of Columbia are at or within 10 percent of their peak, according to the HPI report. The largest home price appreciation was seen in California at 17.2 percent, and Nevada at 15.5 percent. CF Funding’s home state of Illinois is still 26.5 percent below peak values, and Nevada is 39.9 percent below peak values. CF Funding’s hometown of Chicago-Naperville-Arlington Heights saw an 11.5 percent price increase year-over-year excluding distressed sales. As seen in the National Snapshot graph, some states such as Texas and Hawaii saw little-to-no change from peak prices (including distressed sales).

 

from www.corelogic.com

It was also reported today that mortgage rates returned to their lowest levels of 2014, with the most prevalently quoted 30 year fixed rate mortgage rate (best-execution) at about 4.25 percent. Today’s best-execution 15 year fixed was reported at 3.375% and 5 year adjustable rate mortgage at 3-3.5 percent depending on the lender. For daily updates on mortgage rates and more detailed information about mortgage loan programs, visit the CF Funding Website.

Homeownership Vacancy Decreases in First Quarter 2014

The U.S. Census Bureau released its Residential Vacancies and Homeownership report today, revealing that homeowner vacancy rates have decreased since last year. The vacancy rate is now at 2 percent, about 0.1 percent lower than the first quarter of 2013. CF Funding is happy to see the economy recover as more homebuyers are able to fulfill their dreams of homeownership.

Although rental vacancy increased slightly (about 10 basis points to reach 8.3 percent), the vacancy rates are still relatively low in comparison to the past few years, and are now at levels last seen in 2001. The rental vacancy rate in the third quarter of 2009 reached as high as 11.1 percent. The homeowner vacancy rate in 2008 reached 2.9 percent. As CF Funding has mentioned on the Daily News Feed before, the housing industry is experiencing large improvements that show signs of economic recovery, which has led to rising house prices and interest rates.

In regards to prices, the first quarter of 2014’s median asking price for rent in vacant units was $766, and the median asking sales price for vacant for sale units was $139,200. Rental prices have been steadily rising since 1999 as seen in the chart. Home prices were rising steadily until the recession (2007-2009) where a visible decrease shows home values sinking. As the economy improves, home prices are now rising again, which has put equity back into the homes of many, allowing homeowners to refinance in recent years. Read more about refinance options on the CF Funding website here.

The U.S. Census Bureau also divided vacancy rates by region: Northeast, Midwest, South, and West, as well as Metropolitan Areas, suburbs, and others. The vacancy rate for rentals in cities was at 8.5 percent, versus the suburbs’ 7.7 percent, and other areas (outside Metropolitan Statistical Areas – or MSA’s) at 9.7 percent. The homeowner vacancy rate in cities was 2.3 percent, versus the suburbs’ 1.8 percent, and the rate outside MSA’s of 2.3 percent. Rental vacancy was highest in the South at 10.3 percent. Midwest rental vacancy was 8.5 percent, in comparison to the first quarter of 2014 where the Midwest vacancy was 9.5 percent. Northeast rental vacancy was 7.0 percent, not statistically different from the West at 6.4 percent.

Homeowner vacancy rates in the south were also the highest at 2.2 percent in the first quarter, followed by the Midwest (2.0 percent), Northeast (1.8 percent), and the West (1.7 percent). The age group with highest homeownership vacancy was age 35 or younger at 36.2 percent. The age group with the lowest home vacancies was age 65 plus at 79.9 percent. For more detailed information, visit www.census.gov.

Today, most home payments are similar to the cost of renting. CF Funding has been helping renters achieve their dreams of homeownership for over 10 years. The lender has programs available with as low as 3 percent down (or no money down for veterans!). Renters who are looking to buy and gain valuable equity should contact CF Funding today by calling 888-344-4080 or visiting www.cffunding.com .

About Reverse Mortgages

Loan approval is subject to credit approval and program guidelines. Not all loan programs available in all states for all loan amounts. Interest rates and program terms are subject to change without notice. Company NMLS# 202670.

Home Sales Increase in March, Rates Continue to Rise

Originally posted on www.cffunding.com/index.php/news/ on April 22, 2014

In a recent post on the Insights blog, Corelogic Senior Economist Molly Boesel shared that home prices have increased by 10 percent year-over-year as of March 2014. CF Funding is glad to see positive equity return to homeowners as home prices rise. The sales pace is now 5.17 million, which is 31.5 percent higher than February’s pace of 3.93 million. This is to be expected as home sales rise in the Spring as weather improves. In comparison to previous years, however, the jump was high, as the average increase from February to March is 27 percent.

As CF Funding shared last week on their website, single-family home starts grew in February, and the Insights Blog confirms this trend as “improvement in March home sales were led by newly constructed homes which increased by 24 percent, followed by re-sales which increased by 19 percent.” Improvements in the amount of distressed sales were also evident, as last year’s 20.4 percent is now reduced to 13.7 percent. REO sales and short sales were also down, with short sales accounting for only 3.8 percent of total sales in March. According to Boesel, “REOs typically sell at a larger discount compared to healthy sales than do short sales… the more recent shift away from REO sales is a driver of improving home prices.” She emphasizes that distressed sales will never reach a level of 0, but ideally could return to pre-crisis lows of about 2 percent.

The state with the largest amount of distressed sales was Michigan, at 29.7 percent. Illinois was second with 25.9 percent, followed by Nevada, Florida, and Georgia. CF Funding is happy to share that California saw a large decrease in distressed sales in March, with a 17.4 percent drop. Unfortunately CF Funding’s hometown of Chicago-Naperville-Arlington Heights was reported with the highest amount of distressed sales in March of 25 Core Based Statistical Areas (based on population).

In other mortgage news today, mortgage rates continue to rise, as Mortgage News Daily reported that “rates pushed into their 2-week highs yesterday, but are still well under the levels seen in the first week of April.” The most frequently quoted rate for a 30 year fixed mortgage was about 4.5 percent, making today’s rates about .02 percent higher. These rates can be compared to 2014’s lows of about 4.25 percent and highs of about 4.625 percent.

For more information about home price and interest rates, follow CF Funding Corporation on Facebook at www.facebook.com/cffundingcorp or contact a loan specialist today at (888)344-4080.