Category Archives: Home Equity Loan

Fed Sees Major Improvement in Home Equity During Q3 2013

After extensive data analysis, the Federal Reserve has released information that net equity in household real estate increased by $2.2 trillion in the third quarter of 2012 to Q3 2013. In addition, homeowners’ equity as a percentage of household real estate experienced a drastic increase—from 44.3% a year ago to 50.8% at the end of […]

More Borrowers Missing Home Equity Payments

A growing number of U.S. borrowers have missed payments on home equity lines of credit (HELOC), even as mortgage delinquencies have been declining. As many borrowers are beginning to hit their loans’ 10-year anniversary, they will have to start paying the principal balance as well as the interest at this time. Therefore, homeowners will see […]

Home Equity Improving at Record Pace

Reports from the third quarter of 2013 have shown that shortages of homes on the market may ease due to an improvement in home equity, according to Seattle-based Zillow Inc. In Q3 2013, homeowners with negative equity (owing more than the house is worth) dropped to 21% from 23.8% the previous quarter. Owners with at […]

“Resets” on HELOCS to Occur In Near Future

Home equity lines of credit (HELOCs) that were extended during the housing boom will be resetting in upcoming months, according to mortgage and credit experts in the housing industry. The credit lines that were issued are considered second mortgages with floating rates and flexible withdrawal terms; during the first ten years, only interest rate payments […]

CoreLogic: Fewer Homes Underwater in Q2 2013

CoreLogic recently reported that 2.5 million U.S. mortgages have surfaced from negative equity or underwater in the second quarter of 2013. That means 41.5 million U.S. homes currently exist with a positive-equity type of mortgage. Despite an increase in mortgages, 7.1 million homes are still considered underwater due to homeowners owing more money than the […]

Changes from Federal Housing Administration Could Mean Revival of Reverse Mortgage Market

A recent article from Bankrate noted that the “housing market bust correlated strongly with a sharp decline in reverse mortgage origination.” However, with federally insured programs due to make some changes, the product could experience a resurgence. Data from the Federal Housing Administration (FHA) indicated a significant volume increase during the height of the housing […]

CoreLogic, RealtyTrac Confirm Improving Home Equity

Last week, RealtyTrac announced its findings that some 600,000 homeowners had emerged from being “deeply underwater” (that is, with loan-to-value ratios in excess of 125%) since May. During that same time, CoreLogic also that homeowners are rapidly recapturing the equity they lost suddenly late in the last decade. Currently, more than 2.5 million more residential […]

FHA Plans to Set New Regulations Regarding Reverse Mortgage Rules

Seniors have used reverse mortgages as a lifeline to deal with urgent financial needs, causing them to fall into a financial crisis. The National Council on Aging says one-third of its counseling clients have mortgage debt that exceeds 50% of the value of their home. When using a reverse mortgage to pay off existing mortgages […]

Aggregate Home Equity Increased during Q1 2013

According to the CoreLogic Home Equity Report, aggregate home equity during the first quarter of 2013 surpassed $4.2 billion, a 9% increase from the previous quarter. Home equity is used to accurately predict default rates. The changes in home equity have led to a major boost in consumer confidence and spending. Consumers are finding out […]

Affordable Financial Services LTD Says Elimination of Mortgage Interest Deduction Will Hurt Mortgage Lending Industry

(Huntington, NY) — Brian Leibowitz, CEO and Owner of Affordable Financial Services LTD, says the government’s proposal to do away with the mortgage interest deduction (MID) will negatively impact the mortgage lending industry as prospective homeowners will hold off on buying a home and fewer purchase applications are filed. U.S. Congressman Dave Camp of Michigan, […]