Sunrise Homes & Renovations, Inc.

Building An Emergency Fund During An Emergency

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Building An Emergency Fund During An EmergencyBy now, it should be apparent that this COVID-19 (Corona-virus) pandemic is going to be here for several months. It is already causing the market to plummet and is disrupting jobs all over the country. Many people who work as hourly employees (or are independent contractors) are starting to suffer. As people’s budgets start to feel the squeeze, this is exactly the time that people should be relying on an emergency fund; however, for those who don’t have one, it is time to start saving.

How To Create An Emergency Fund

Even though cash assistance from the government might be coming soon, this is not going to be enough to get people through the crisis. To start building an emergency fund, it is important to take a look at the regular income first. Try to figure out how many shifts are going to cut and estimate what money is left (unless you are a salaried employee).

After this, take a look at other possible sources of credit. Know the limits on the card and figure out to what extent these cards can be drawn out. If there is an income tax refund coming, plan for this; however, remember that the government might be behind.

Finally, try to cut spending where possible. Remember that vacations should be postponed, given travel restrictions. Most restaurants are going to close, so try to shop at the grocery store instead. Finally, consider asking the bank to put a stop on mortgage payments. These are all great ways to save immediate money.

Save What Is Left

Finally, after figuring out all of the expenses, subtract this from the expected monthly income over the next few months. Whatever is left should be socked away into an emergency fund. It is critical to have this fund put away in case a repair is needed on the house or if someone gets laid off. 

Other Ideas To Consider

Finally, while this is not advisable, people might be able to cut retirement contributions to help with the emergency fund. It is better to save for the future when possible, but this can help people save money in a pinch, if needed. Take these tips to heart over the next few months and build an emergency fund.

COVID-19 Relief Programs For Homeowners

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COVID-19 Relief Programs for HomeownersFederal housing agencies and government-sponsored enterprises Fannie Mae and Freddie Mac are responding to the COVID-19 outbreak with multiple relief programs for homeowners experiencing hardship due to illness and job loss.

60-Days Forbearance on Home Mortgages Owned or Backed by Fannie Mae or Freddie Mac

Many U.S. home loans are owned or guaranteed by Fannie Mae or Freddie Mac. Homeowners can determine if your loan is connected with Fannie Mae here.here. Please check here to check if your mortgage is affiliated with Freddie Mac.

CARES Act Provide Relief for Eligible Homeowners

The federal Coronavirus Aid, Relief and Economic Security Act provides two protections for homeowners:

  • Payment forbearance for homeowners impacted by the COVID-19 emergency. Forbearance periods up to 12 months may be approved based on individual hardship.
  • Foreclosure and other legal actions are stopped for 60-days. 

Forbearance may require a lump sum payment of deferred payments after the forbearance period or deferred payments may be added to the back of a mortgage, but fees may not be added to the loan balance.

Loan Modifications

Mortgage servicers may provide modification of loan terms to assist homeowners impacted by COVID-19. Modification terms can include:

  • Reduction of mortgage interest rate
  • Extension of the loan repayment term.
  • Capitalization of unpaid principal and/ or interest to principal balance; this means adding unpaid amounts to the mortgage balance.

Contact your mortgage servicing company as soon as you know you will miss a mortgage payment or payments Relief programs usually require documentation verifying financial hardship. Mortgage servicers are experiencing high volumes of calls; you may need to call multiple times for assistance.

Mortgage Assistance for Non-Government Owned Loans

If you have a conventional mortgage that is not owned or backed by a government agency, please call your loan servicing company and ask about mortgage relief provisions. If your loan is covered by private mortgage insurance (PMI), ask your loan servicer if that company can help with relief options.

State and local agencies may offer housing relief options to homeowners and renters. Certified credit counseling agencies can also help with determining budgeting needs and local resources in addition to working with unsecured creditors toward reducing payments on credit card debt and personal loans.

What’s Ahead For Mortgage Rates This Week – April 6th, 2020

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What’s Ahead For Mortgage Rates This Week – April 6th, 2020Last week’s economic reporting included readings on pending home sales, Case-Shiller Home Price Indices, and Bureau of Labor Statistics reports on national unemployment. Weekly readings on mortgage rates and first-time jobless claims were also released.

Pending Home Sales Slow in February Before Coronavirus Took Hold

The National Association of Realtors® reported fewer pending home sales in February as the coronavirus gained traction. Pending sales rose by 2.40 percent in February as compared to January’s growth rate of 5.30 percent. Before the outbreak, pending home sales gained momentum in all U.S. regions.

Pending home sales are sales for which signed purchase contracts were signed, but sales were not completed. Nationally, year-over-year pending sales in February were 9.40 percent higher than in 2019. Regional pending home sales all posted higher growth; The West reported  4.60 percent growth in February.

Pending home sales rose 4.50 percent in the Midwest and 2.80 percent in the Northeast. The South posted 0.10 percent growth in pending home sales.

Pending home sales typically indicate future completed sales, but the coronavirus pandemic was expected to suppress home sales as state and local authorities implemented “shelter in place” rules and all but essential business operations shut down.

Mortgage Rates Mixed  as New Jobless Claims Skyrocket

Freddie Mac reported lower fixed mortgage rates last week. Rates for 30-year fixed-rate mortgages averaged 3.33 percent and were 17 basis points lower. Mortgage rates for 15-year fixed-rate mortgages averaged 2.82 percent and were 10 basis points higher. Rates for 5/1 adjustable rate mortgages averaged 3.40 percent and were six basis points higher.

New jobless claims were unprecedented at 6.60 million first-time claims filed. Analysts expected 4 million new claims as compared to the prior week’s reading of 3.30 million initial jobless claims. The coronavirus pandemic negatively impacted job growth with the government’s Non-Farm Payrolls reporting 701,000 fewer public and private-sector jobs in March as compared to 214,000 jobs added in February.

ADP reported 27,000 fewer private-sector jobs in March as compared to 179,000 private-sector jobs added in February. The national unemployment rate rose from 3.50 percent in February to 4.40 percent in March. Analysts expect new jobless claims to rise in months ahead as the coronavirus spreads and more employers close their doors.

What’s Ahead

This week’s scheduled economic news includes readings on job openings, inflation, and consumer sentiment. Weekly readings on mortgage rates and new jobless claims will also be released. Please note that reporting may not appear as scheduled due to work stoppages caused by the pandemic.

The Department Of Veterans Affairs Is Allowing Drive-by Appraisals Because Of COVID-19

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The Department Of Veterans Affairs Is Allowing Drive-by Appraisals Because Of COVID-19The COVID-19 (Coronavirus) pandemic has impacted every industry across the country. Many people are being asked to shelter in place and everyone has been asked to practice social distancing to try to curtail the spread of this deadly virus.

The Federal Housing Finance Agency (FHFA) has asked both Freddie Mac and Fannie Mae to make some changes in the manner they conduct property appraisals and employment verification.

Shortly after the move by the FHFA, The Veteran’s Administration (VA) and Federal Housing Administration (FHA) followed suit by relaxing property appraisal requirements. Due to the unusual circumstances that are facing the country right now, these changes are necessary to keep people safe while minimizing the blow to the economy.

Exterior Inspection Appraisals

One of the critical parts that must happen during the purchase of a home is something called an appraisal. Typically, these appraisals involve an on-site inspection of the home, taking a close look at everything inside to try to make sure the price is as accurate as possible. Now, appraisals can be done on something that is called an exterior-only or “drive-by” basis. This means that appraisers might drive by to confirm that the property exists, but will not physically inspect it. 

In some cases, they might just use the computer, find comparable properties, and appraise it in this manner. This is normally referred to as a “desktop appraisal”. This is important for everyone, including those who are Department of Veterans Affairs (VA) home loan borrowers.

Why Appraisals Are Needed Now

Even though fewer people may be currently looking at houses, there are other reasons why an appraisal might be necessary. Many people are looking for sources of emergency funding, particularly as hours get cut and people get laid off.

There are still bills that need to be paid, including utility bills and mortgages. Therefore, many people are looking at taking out a second mortgage as a source of immediate liquidity. Sometimes, an appraisal might be needed to make this happen.

Other Measures Are Being Taken By The FHFA

In addition to the notice about drive-by appraisals, the FHFA has also suspended any foreclosures and evictions in many cases. People who are facing hardship due to the pandemic can also apply for forbearance, which can take a lot of stress off of the shoulders of individuals and families.

If you have questions about your mortgage and financing options available to you during the Coronavirus pandemic, contact your trusted mortgage professional. They will be best able to analyze your personal situation and provide the most accurate feedback.

Case-Shiller: January Home Price Growth Strong; Pandemic Impact Unknown

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Case-Shiller: January Home Price Growth Strong; Pandemic Impact UnknownUnited States home prices increased by 3.90 percent year-over-year in January as compared to December’s growth rate of 3.70 percent according to Case-Shiller’s National Home Price Index. Home prices also rose in Case-Shiller’s 20-City Home Price Index.

20-City Home Price Index: Phoenix Arizona Leads in Home Price Growth

The Case-Shiller 20-City Home Price Index is followed closely by real estate pros and its trends are used to gauge home price growth within cities included in the index. Phoenix, Arizona led home price growth rates for the eighth consecutive month with a year-over-year growth rate of 6.90 percent. Seattle, Washington followed with year-over-year home price growth of 5.10 percent; Tampa, Florida also reported home price growth of 5.10 percent.

Seattle replaced Las Vegas, Nevada in second place, which showed a comeback for coastal housing markets that lost ground in recent months.

Case-Shiller’s 10-City, 20-City, and National Home Price Indices all posted higher home price growth rates in January. 14 of 20 cities in the 20-City Home Price Index showed faster growth rates for home prices in January than in December. Home price growth was strongest in the South and West; home price growth was weaker in the Midwest and Northeast.

FHFA Reports 5.20 Percent Yearly Home Price Growth in January

The Federal Housing Finance Agency, which oversees mortgage giants Fannie Mae and Freddie Mac, reported 5.20 percent annual home price growth for homes owned or financed by Fannie Mae and Freddie Mac. While home prices have been fueled by limited supplies of available homes, demand for homes will likely fall as the coronavirus spreads throughout the U.S.

Local and statewide requirements to limit nonessential activities caused businesses and schools to close and many workers were laid off.  Prospective homebuyers could be sidelined for months if not indefinitely.

Analysts had mixed opinions on how the coronavirus outbreak could impact home prices; if companies and jobs reopen after the virus has passed, housing markets are expected to recover. Because the ultimate length and impact of the pandemic remain unknown, it’s currently impossible to know how housing markets will be impacted.

 

 

How To Be Sure Your Home Is Sanitized During Quarantine

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How To Be Sure Your Home Is Sanitized During QuarantineDuring the COVID-19 pandemic, it is more important than ever for everyone to make sure they act in the best interests of their local communities and the world as a whole. This means that everyone should follow the advice of the Centers for Disease Control and Prevention (CDC), practice social distancing measures, and obey all orders to shelter in place. When families are stuck at home, it is important to ensure the house is sanitized. This will prevent the spread of this dangerous virus. There are a few measures that everyone should take to make sure their home is as clean as possible.

Clean High-Touch Surfaces Frequently

Any surfaces that multiple people are going to touch on a regular basis need to be cleaned every day. Some of the most common surfaces people need to clean daily include counters, doorknobs, bathroom appliances, faucets, toilets, phones, tablets, end tables, tabletops, and keyboards. Try to use a household spray followed by a wipe.

Read the labels of these cleaning items to make sure they are being used properly. During the cleaning process, try to wear gloves and make sure to dispose of them after they are used. Finally, if there are any surfaces that have bodily fluids on them, including blood, these need to be cleaned thoroughly as well.

Step Up Laundry Practices

All laundry needs to be cleaned as thoroughly as possible. If there are any clothes that have bodily fluids on them, including sweat after working out, these need to be laundered immediately. While handling laundry, try to wear disposable gloves. Try to keep these items as far away from the body as possible. Make sure to closely follow any and all directions on laundry detergent. Try to wash clothing at the warmest temperatures allowed on the clothing labels to ensure any pathogens are killed. Finally, wash hands with soap and water after handling any laundry.

Ask Questions 

Finally, anyone who has questions about how to stay safe during the COVID-19 pandemic needs to rely on resources from credible sources such as the CDC and WHO. Furthermore, don’t hesitate to call a local doctor and ask questions. It is important for everyone to watch out for one another during this trying time.