The Katy Agent Team Ron Tarvin (281)935-7152 Email The Katy Agent Team

How Much Can You Afford?

Our calculators will help you determine loan amounts, mortgage qualification, affordability or whether you should be renting or buying.

Complete the fields below and click Calculate Now. To view the results of each calculation, click on the various tabs. To email yourself a copy of the results, click the Receive this Detailed Analysis link.

Required

Required Must be a number between 1 and 50
Term In Years:
Required Must be a number between 1 and 100
Interest Rate:	%
Required
Cost of Home:	$
Required Cannot be more than Cost of Home
Down Payment:	$
Required
Annual Insurance:	$
Estimate Insurance to 0.43%of Cost
Required
Annual Property Tax:	$
Estimate Tax to 1.2%of Cost
Monthly Income:	$ Required
Monthly Debt:	$ Required

Optional

Gross Debt Service Ratio (GDS):
Total Debt Service Ratio (TDS):
Condos Fees:	$

Results

Receive this Detailed Analysis

Mortgage
Qualification
Affordability
Rent vs Buy

Your Monthly Payments

Loan Amount:
Loan Insurance ( %):
Total Loan(Mortgage) Amount:

Principal & Interest:
Homeowners Insurance:
Property Taxes:
Condo Fees:
Monthly Loan Insurance (%):
Total Monthly Payment:

Income Needed to Qualify for the Mortgage

Total Monthly Loan Payment:
Total Monthly Debt Payment:
Monthly Loan Insurance (%):
Qualifying Income of % GDS Ratio:
Qualifying Income of % TDS Ratio:

What You Can Afford
We are using the % ratio.
Cost of House:
Down Payment:
Loan Value:
Monthly Principal & Interest:
Monthly Insurance:
Monthly Property Tax:
Monthly Condo Fees:

Note: Cost of House = [(Monthly income x Debt Ratio) – monthly tax – monthly insurance – condo fee] / (monthly interest rate/ function of interest rate)

Monthly Rent:	$ RequiredMust be a positive number	No. of Years you plan on keeping the home:	RequiredInvalid
Annual Rental Increases:	% RequiredInvalid	Yearly Appreciation on the Home:	% RequiredInvalid
Monthly Renter Insurance:	$ RequiredInvalid	Annual Home Maintenance:	% RequiredInvalid
Savings or Investment Rate:	% RequiredInvalid

Mortgage News Daily

MBS RECAP: Snowball Buying As Fedspectations Team Up With Euro-Drama

Posted To: MBS Commentary

MBS Live : MBS Afternoon Market Summary Two of our favorite made-up terms joined forces today to carry MBS to yet another all-time high and 10yr yields to the high 1.6's! The day looked as if it would be a deceleration in terms of volume and volatility this morning, but we turned out to be quite wrong about that, although rates moved in the right direction for MBS watchers. The culprits were overnight headlines in Europe that noted a similar "run on the bank" going on in Spain as the one just seen in Greece. Even if the news and events themselves weren't responsible for subsequent all-time lows in German Bund yields, they certainly reminded investors that there are bigger fish to fry regardless of how Greece plays out. Then there was the Philly Fed data, which in and of itself, isn't cause...(read more)

Forward this article via email: Send a copy of this story to someone you know that may want to read it.

Mortgage Rates Officially Hit New All-Time Lows!

Posted To: Mortgage Rate Watch

Mortgage Rates hit new all-time lows today. In most cases, lenders' offerings are just slightly better across the board than they were in late January, the last time we officially noted "new all-time lows," though some lenders are not quite back to their previous best levels. A much weaker-than-expected reading on a widely followed report on business conditions in the mid-Atlantic region gave rates markets a bit of an early jolt lower. From there, an absence of additional data gave way to technical momentum, helping rates even lower. Markets are facing tremendous uncertainty over the eventual outcome of Greek elections in June as well as the fate of the Spanish banking sector. Today, Spain saw their own version of the "run on banks" that occurred in Greece yesterday, reminding traders that...(read more)

Forward this article via email: Send a copy of this story to someone you know that may want to read it.

NAHB, NAR Agree, Homes Never More Affordable

Posted To: MND NewsWire

For the second time in a week a national housing trade organization has shown that purchasing a home is now within the reach of a record number of Americans. On Tuesday the National Association of Realtors® (NAR) published its affordability index indicating the purchasing power of American households had broken through 200 on its index for the first time in its history. Today the National Association of Home Builders (NAHB) and Wells Fargo released their Housing Opportunity Index (HOI) which showed that 77.5 percent of all new and existing homes sold in the first quarter of 2012 were affordable to families earning the national median income. This is up from 75.9 percent in the fourth quarter of 2011. While NAR used a national median income of just under $61,000 the one used by the NAHB...(read more)

Forward this article via email: Send a copy of this story to someone you know that may want to read it.

MBS MID-DAY: More Gains On Philly Fed Miss

Posted To: MBS Commentary

MBS Live : MBS Morning Market Summary The main market-mover of the morning was the release of the Philadelphia Fed Survey, the chief component of which fell from 8.5 last month to -5.8 today. This happens occasionally with regional manufacturing reports and particularly, we're reminded of the August Philly Fed Index that fell to -22 from a +6.2 in July. Although that instance constituted a bigger discrepancy, today's is arguably as much of a surprise considering the recent relative stability of the data (or even "uptrend" with the exception of last month's minor pull-back). Amazingly, it kicked off the biggest hour of volume of the week by a small margin over y'day's hour following the Greece/ECB news. MBS hit another all time high albeit by a small margin and 10yr yields now trade under 1...(read more)

Forward this article via email: Send a copy of this story to someone you know that may want to read it.

The CFPB already has how many employees? And LO's wonder, "Could mortgage rates really go lower?"

Posted To: Pipeline Press

Accenture Credit Services announced that, "Low interest rates, less competition, more regulation and tighter credit standards have pushed the time it takes the biggest mortgage lenders to refinance a mortgage loan from 45 days a year ago to more than 70 days now." Underwriters, who in the past could underwrite 6-8 files a day, now do 2-3 - and they've turned into auditors instead of underwriters . And the borrower, of course, is the one who pays the cost of the longer time frames and the higher overhead. But refinancing cures all evils, right? Wrong: "The number of FHA-insured home loans entering foreclosure jumped in March after half the mortgages it modified to ease repayment terms were in default again a year or more later." More on that HERE . Speaking of loans heading south, to complicate...(read more)

Forward this article via email: Send a copy of this story to someone you know that may want to read it.

The Day Ahead: Calendar Lightens Up Before Data-Less Friday

Posted To: MBS Commentary

If the calendar of upcoming events and y'day's volume are any indication, it's possible that Wednesday was the climactic final scene before the intermission. Volume ramped up steadily on the first three days of the week, hitting it's best levels since mid-March. 10yr Treasuries hit their best levels since October, stocks their lowest since January, and MBS hit all-time highs yet again (and took down a big chunk of originator production in the process). All "that" seemed to come to a head with today's FOMC minutes and obligatory Greek headline(s). On the surface, tomorrow looks much calmer by comparison. Apart from the standard weekly Jobless Claims, forecast at 365k vs last week's 367k (not really on our radar as a big market mover at the moment), there's really only the Philly Fed index at...(read more)

Forward this article via email: Send a copy of this story to someone you know that may want to read it.

Judicial States Continue to Skew Foreclosure Statistics

Posted To: MND NewsWire

There were substantial improvements in delinquency rates during the first quarter of 2012 according to the National Delinquency Survey for the period released this morning by the Mortgage Bankers Association. At a conference call for media accompanying the release, Jay Brinkmann, MBA's Chief Economist and Senior Vice President of Research and Education said that the combined percentage of loans in foreclosure or at least one payment past due was 11.33 percent, a 120 basis point (bp) decrease from last quarter and 98 from one year ago. This was the lowest that this measure has been since 2008. This improvement was driven by a 62bp decrease in the rate of loans that were 30 days or more delinquent. Brinkmann said that the first quarter generally experiences a decline in 30-day delinquencies for...(read more)

Forward this article via email: Send a copy of this story to someone you know that may want to read it.

MBS RECAP: Another Logical Day Of Record Highs

Posted To: MBS Commentary

MBS Live : MBS Afternoon Market Summary We characterized yesterday as "logical and well contained" with the benefit of some hindsight. While today's session wasn't "well contained," it was rather logical in that it went where you'd expect it to go given the events. Merkel surprisingly supportive of Greece remaining in the Euro-zone? Bond markets selling = logical. ECB wires saying certain MoPo operation with certain Greek banks is on hold? Bond markets bouncing back = logical. FOMC Minutes from a meeting that took place BEFORE the recent round of Euro-drama ramped up showing no incrementally hawkish viewpoints? Bond markets inferring Fed must be that much more willing to stimulate given recent events = logical. All in all it led MBS to all-time highs yet again, and bond markets were generally...(read more)

Forward this article via email: Send a copy of this story to someone you know that may want to read it.

Mortgage Rates Steady At All-Time Lows Thanks To Europe And The Fed

Posted To: Mortgage Rate Watch

Mortgage Rates are steady to slightly improved today following as Europe's fiscal woes continue providing downward pressure on US interest rates. The forces at work keeping rates low were joined today by "minutes" from the most recent FOMC meeting. All told, several notable lenders are offering their all-time lowest interest rates while others remain close. Markets actually got off to a shaky start as far as rates were concerned. Had it not been for the European headlines and the FOMC Minutes , we'd likely be looking at slightly higher rates today. Mortgage-backed-securities (aka "MBS," the most direct influence on mortgage rates) and US Treasuries began the day in weaker territory until news that the European Central Bank had ceased it's normal interactions with several Greek banks, and the...(read more)

Forward this article via email: Send a copy of this story to someone you know that may want to read it.

Concerns Grow Over Freddie/Fannie Price Dislocations

Posted To: Secondary Markets

One of the themes discussed at the MBA’s recent conference in New York was the idea of “a merger” of the mortgage-backed securities issued by Fannie Mae and Freddie Mac. The FHFA itself now lists one of its goals to "build a single securitization platform" in the Strategic Plan for 2013-2017 this morning. MBA President David Stevens recently addressed the concept, expressing concerns about the growing price and economic disparity between Fannie Mae and Freddie Mac securities.

Before continuing, it will be helpful to discuss the differences between the Fannie and Freddie securitization programs. Since it takes time for cash to be passed from servicers to the GSEs to and then to investors, both types of securities (as well as Ginnie Maes) pay investors after a “delay.” This is fairly simple in concept. All securities have a “record day” which determines who is the “holder of record” at any point in time. For agency MBS, the record day is always the 30th of the month. The actual cash (principal and interest) owed to the investor is then remitted to investors in the following month.

Fannie Mae always pays bondholders on the 25th day of the month following the record date; Freddie Golds pay on the 15th day of the following month. (Freddie Mac pools originally paid on the 15th day of the second month after the record date. In the late 80s/early 90s Freddie Mac created the Gold program, which moved the payment date up a month for fixed-rate pools; note that Freddie ARMs are still issued under the “green” program and have the old payment structure and delay.)

Because time has value, the shorter delay for Gold pools means that they should trade at a higher price than Fannies, assuming they are priced to the same yield and prepayment speed. At current levels, the constant-yield price of 30-year Gold 3.5s is roughly 2+ ticks higher than Fannie 3.5s. (The economic value of the delay difference is a function of a number of factors, including the pool’s coupon and yield.)

Despite the shorter payment delay, however, Gold pools have almost always traded at a concession to Fannies rather than at a premium. The differential is largely due to the liquidity difference between the two agencies’ securities. According to the MBA, daily trading volumes for Fannie MBS are 20 times larger than those for Freddie Golds. The relatively impaired liquidity of Golds implies wider bid/ask spreads, making trading in the securities more expensive; it also means that prices are more apt to be impacted by heavy trading volumes and/or increases in market volatility.

As a result, it is significantly more expensive for investors and issuers to trade in Golds, meaning that they need to trade at a concession to Fannies in order to compensate for their reduced liquidity and higher trading costs. The price differential between the two programs is also growing, as illustrated by the following chart showing the pricing difference between Freddie Mac Gold and Fannie Mae 3.5s over the last few years.

The 60-day moving average of the concession has widened from 2-3 ticks in the fall of 2011 to its current level of 9-10 ticks; as of the close on Monday 5/14 the spread was 9/32s. Keep in mind that this shows only the actual price difference; the economic difference (i.e., including the delay difference) is roughly another 2+ ticks wider over time.

There is an unfortunate circularity to the price/liquidity issue. The lower prices paid for Gold securities means that originators pricing to Gold execution are at a significant disadvantage relative to those using Fannies as their benchmarks; in order to offer comparable rates, they must factor lower profit margins into their pricing. As a result, fewer originators create Gold securities, which results in reduced float for the securities, which serves to further impair liquidity.

Interestingly, Stevens’ comments included one questionable statement. He was quoted following the speech as saying “…(A)nd the taxpayer subsidizes the lender for the difference between the two. Taxpayers will be saved hundreds of millions of dollars because the execution will no longer be subsidized." In the current market, with comparable g-fees for Fannie and Freddie, the cost of the price concession and inefficient execution is borne by the originators creating Freddie Mac pools.

However, without action to either combine the securities of Fannie and Freddie or somehow eliminate the price concession, the price and liquidity disparity is likely to grow worse, and issuance of Freddie pools will continue to shrink. The true cost to taxpayers will come in the future; over a longer horizon, it’s easy to imagine that the government will be forced to continue supporting an increasingly uncompetitive enterprise.

...(read more)

Forward this article via email: Send a copy of this story to someone you know that may want to read it.