October 20, 2010

Yes, 2010 has been a trying year with banks and mortgages but there are some signs of easing that will help us lead the Real Estate market into 2011.

The federal government has announced that the high balance limits will remain at $729,750 through all of 2011. We don't have to scramble and it gives buyers confidence that they will be able to access below market rates for the next year.

Jumbo mortgages are back. There are now a number of lenders that will finance up to 80% to a $2 million loan. This access to new jumbo money will give our buyers the ability to finance at competitive rates for our key lending market. The reduced down payment to 20% is key as many lenders in the past year have demanded down payments of 30% or more. Jumbo 30 year fixed rates are below 5% for the first time in decades. Try a 3 year ARM at 2.875% !   All no points.

Fannie Mae has eased appraisal requirements and will now allow a Fannie Mae lender to assign an appraisal to a different lender if they cannot approve the loan. Buyers now can have the assurance that they will not incur double expenses if the first bank can't approve the loan.

Exceptions can be made. Even if the building that you are financing in doesn't meet the new stringent Fannie Mae guidelines, with good compensating factors the best rates can still be achieved. 

For every horror story we hear about, there are dozens of success stories!  Let's look at those and keep our market moving.

Melissa L.Cohn NMLS#16953

President

The Manhattan Mortgage Co., Inc.  NMLS #1546 

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• Insider tips for winning the NYC real estate game in 2012 (brickunderground – Jan. 9, 2012)

• Mortgage Market Molasses (The Real Deal – Dec. 29, 2011)

• How to make or break your appraisal (BrickUndergroundNY – Oct. 25, 2011)

• “Fed struggles to impact U.S. economy” (BBC World News TV – Sept. 21, 2011)

• New York Exceptionalism (New York Magazine – Sept. 18, 2011)

• Combine and Conquer: Your Place and Mine (The New York Times – Sept. 9, 2011)

• Housing’s Next Leg Down (CNBC.com – August 4, 2011)

• Lenders In Search Of Qualified Borrowers! (Hamptons.com – Summer 2011)

• NY real estate pros fear interest spike in debt ceiling fight (The Real Deal – July 28, 2011)

• The Appeal of Adjustable Rates (The New York Times - July 14, 2011)

• A Guide for the Co-op Neophyte (The New York Times - May 26, 2011)

• Melissa Cohn quoted in "New Home Sales Build Up" (PBS - May 24, 2011)

• If U.S. loses triple-A, its citizens will pay (Reuters - April 19, 2011)

• Broker Fee Rules Take Effect (The New York Times - April 14, 2011)

• Getting a Mortgage Before the Door Shuts (The Wall Street Journal - February 25, 2011)

• Calculating the Annual Percentage Rate (The New York Times - February 10, 2011)

• Hey, big lender! (New York Post - January 13, 2011)