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Higher Education or a House: Can Young Americans Have Both?

16 Percent of First-time Homebuyers Say Student Debt Has Kept Them From Buying

 Last week, the Federal Reserve Bank of New York reported that student loan debt rose more than 5 percent in the fourth quarter of 2013 and now exceeds $1 trillion.

Redfin’s Q1 homebuyer survey suggests that these rising debt loads are delaying homeownership among young Americans. From Feb. 20 to 23, Redfin surveyed 1,912 home-buying clients, of which 965 were buying a home for the first time. Among the first-timers,16 percent said that student debt had previously kept them from buying a home.

Student Debt Final Chart * First-time homebuyer respondents only

Of these homebuyers surveyed, 33 percent said that student debt had led them put off a home purchase for one to two years while 31 percent said four years or more.

Student Debt Years Final * First-time homebuyer respondents only

Despite these statistics, Redfin Open Book Lender, John Wheaton, said home buying is still attainable for many student debt holders. According to Wheaton, “Many young people with student loans delay buying a home because they don’t think they can qualify for a mortgage. Yet, many of them actually can. Underwriters generally treat student debt in a more positive light than credit card or auto loan debt.”

For example, a person with $45,000 in student loans (about $500 per month for a 10-year term), a FICO score of 741 and an income of about $75,000 per year could likely qualify for a property starting at around  $375,000 with a 5 percent down payment, Wheaton said.

According to Redfin agent Alex Haried, “For my home-buying clients, student debt hasn’t prevented them from buying a home, it has prevented them from buying the home they want. Instead of buying a $350,000 home, they would rather rent for a few more years as they pay down their student debt and then buy a $500,000 home.”

With tuition costs soaring, potential homebuyers in the future may have even bigger debt hurdles to overcome. From 2008 to 2013, annual tuition for a public four-year university rose 20 percent to $18,391, according to the College Board. For graduate students, tuition growth is even steeper; the cost for a Master’s in Business Administration grew 33 percent between 2008 and 2012. For a top-tier MBA program such as the one at Duke University, students dole out $110,600 in tuition.

More Student Debt, Fewer First-Time Home Sales

As if young Americans aren’t already strained by a weak job market and rising home prices and mortgage rates, climbing tuition costs give them one more reason to put off buying a home. The National Association of Realtors said last week that the share of existing home purchases by first-time buyers slipped to 26 percent of sales, down from 30 percent last year. For the economy as a whole, this means that rising student debt loads — which should, in theory, be a positive sign of a more educated workforce — may be a short-term hindrance to the housing recovery.


The Best Mortgage Broker on Staten Island


The Best Mortgage Broker on Staten Island

         Finding the best mortgage broker, mortgage banker, or mortgage lender on Staten Island is not an easy task. You have to ask yourself this question. What is the most important quality I am looking for? After you have answered this question, I recommend you interview 3 mortgage professionals from Staten Island. Remember, this is a large investment and for the most part it ca be a long investment, so every dollar counts.
          Honest, integrity and responsiveness are my core strengths and values. When dealing with myself and my company, you are not just a number, you are a CLIENT FOR LIFE. We work with you personally, unlike Staten Island based Wells Fargo, Chase or another large institution here on Staten Island. We answer our phones at night and on the weekends because we realize you WORK for a living and sometimes cannot find the time during normal business hours.
        Give me a call for a no cost analysis and a face to face meeting at your home or one of our local offices here on Staten Island and let me explain why I am the Mortgage Expert and how I have done business for 16 years on Staten Island, all based on referrals from satisfied “Clients for Life”.
                                                                 1110 South Avenue, Staten Island, NY 10314


Buying a Home on Staten Island

Buying a home is one of the most important decisions you may make in your lifetime. I am asked over and over “What is my first step”? The answer is simple GET PRE-APPROVED. Buying a home on Staten Island is almost impossible unless you have a pre-approval to submit with your offer. Here is what happens when you are pre-approved. Your mortgage broker or Mortgage Banker* will sit down with you and take a look at your credit, income and assets (savings, etc.), once an in debt analysis is completed you will then be able to be pre-approved for a certain amount of money for a certain term. THIS DOES NOT MEAN THAT YOU SHOULD ACCEPT THIS! You MUST also be comfortable with what you are being approved for. For example “Just because your income states you can afford $2500.00 per month does not mean you can afford that. Remember, any increase in what your housing expense is now and what it will be in the future will change your life. What are you willing to sacrifice if anything to make up this difference? Other things to note:

  • How long are you going to stay in the home?
  • Are you growing a family (is there room to grow)?
  • Is your employment secure?
  • Is your income increasing?

All these factors and more come into play when looking to buy a home. A good realtor will assist you and finding a mortgage broker in Staten Island that knows there business (like me), will be instrumental for your success. Contact me for a free analysis and Best Of Luck !!!

The Best Mortgage Broker on Staten Island

Okay, so we are talking about finding the best mortgage broker on Staten Island. Everyday I receive calls from people who have absolutely no idea about mortgages but are just calling everybody they can to see who is offering the lowest rate. NOW, since rates do not vary that much from bank to bank and lender to lender, it seems “the best liar” wins the business. Those of us who refuse to compromise our integrity give as accurate a quote as possible and explain that to really quote a rate, “We need to see the prospects information”. We are not trying to buy time or string them along, this is just how it works.When it comes to conventional loans there are all different tiers of pricing. For instance; Someone with a 620 credit score is going to be “Paying” for a rate that let’s say someone with a 660 credit score “Does not have to pay for”. There are buckets for different credit scores 620-640, 640-660, 660-680 etc.
     The frustration felt by myself and other ethical Mortgage Bankers on Staten Island and Mortgage Brokers on Staten Island is at an all time high. We receive calls after these people close stating that “We were right” and that they were a victim of a “Bait and Switch” but IT’S TOO LATE. On most purchase transactions, the borrowers will not forgo the closing for a higher rate or higher fees than what they though they were getting. They will be angry and complain but they will 99% of the time close anyway.
    So to sum it up, AGAIN, if you are being quoted a lower rate from one mortgage professional/Company than all the other’s YOU ARE PAYING FOR IT SOMEWHERE ELSE. 
    My advice is simple, DON’T SHOP RATE, Shop Mortgage Professionals and ask the following:
  • How long have you been in the business?
  • What are the average rates at Today (you have to ask as not to scare them)?
  • Do you charge points?
  • What are your total bank charges/fees?
  • How do you get paid for doing my loan?
  • How do I lock in a rate and is there a fee?
Once you have found the Broker or Banker that you are comfortable with and submit initial information and documentation, then you can ask everyday, “What would my rate be if I locked today”? You can also ask for advice as to what you can do to see how rates are moving (in a volatile market this is key) and you can ask you loan officer or mortgage broker, “what time each day can I get in contact with you to see what rates are doing”?  I know this blog may seem redundant BUT 8 out of 10 people think it’s all about RATE, when it’s all about YOUR MONTHLY PAYMENT and WHAT IT COST to get that payment. I hope you found this useful.
Sal Criscuolo “The Mortgage Expert”
1110 South Avenue, Staten Island, N.Y.10314 Article 1033 Mortgage Brokers on Staten Island

Some Facts from the “Mortgage Expert”

Getting approved for a mortgage is not rocket science but people do not seem to get it. As far as Mortgage Lending On Staten Island and Brooklyn (my two main area’s), potential home buyers seem to think that stretching the truth to their loan officer or mortgage broker will help them get to the closing able quicker. Nothing can be further from the truth. Actually the truth is that “if you are forthcoming with your Mortgage Broker or Bank Loan Officer” you stand a much higher chance of getting approved. We are the specialists and  most of us have seen the different scenario’s and understand that this is not only about numbers and low mortgage rates but it’s a visual business as well. We paint a picture for the underwriter and the underwriter determines the ability of the prospect to repay the mortgage. The more TRUTH and FACTS we are armed with, the better and smoother the transaction. CREDIT, INCOME, and AVAILABLE ASSETS make up a mortgage and you Mortgage Broker or Loan Officer will know how to assemble the particular items and paint the full picture of your eligibility. IF THEY ARE DOING THEIR JOB CORRECTLY. Although Staten Island Mortgage Brokers shop their loans to banks, they still have an idea of exactly what type of loan will and will not work.

The next hot spot I need to hit is Mortgage Rates. Mortgage Rates do not vary from bank to bank tremendously. With that being said, be sure to check your APR. This is the one common denominator by which you can comparemortgages, mortgage broker’s and mortgage bankers. Staten Island has over 200 mortgage broker’s or mortgage professionals so it’s very competitive. be sure to get all the facts on your rate and if it’s a low mortgage rate and it’s lower than what everyone else is showing, buyer beware. Until you have a signed loan rate lock in agreement, you have nothing. be sure to get the agreement once you are told you have been locked in. Good Luck and Happy Home Shopping.

Mortgage Broker Staten Island

Staten Island Mortgage Broker

We will give you a free comprehensive mortgage evaluation and guide you through the mortgage process through each step from pre-approval to closing. Our offices are located conveniently on Staten Island, in the corporate park (Next to the Hilton).

Call the Mortgage Expert Sal Criscuolo 718 869 4795 the Staten Island Mortgage Broker & Banker


Staten Island Fire Department Mortgage Program For FDNY Families

NYC Fire Department benefits, offered by the mortgage expert, serve the interests of today’s FDNY families. We promises value, quality service and cost-savings that you deserve.

We are committed to improving the quality of life of working families through our unique products and services. We achieve our mission through:

  • Using the strength of unions and referral partners to create a large client base at discount costs.
  • Savings & Unique Programs: Quality programs and services promote better lifestyles for working families – including low rates, lender discounts, no points, personalized one on one service.
  • Service: Our entire staff support consumers and advocate your rights and the best services with our bank and affiliates. Our resources help members make informed decisions for themselves and their families.
    Read more about the Union Plus commitment to the labor movement and social responsibility here.

Obama ‘s Housing Plan: Government To Maintain Significant Role In Mortgages

The U.S. government may continue to play an outsized role in the nation’s roughly $10 trillion home loan market under a proposal President Barack Obama is set to endorse on Tuesday.

The plan, along with a sweeping set of new and old housing recommendations and ideas, will be unveiled in Phoenix, as Obama launches his second-term housing policy agenda in the same city where he made one of the biggest broken promises of his first term .

Under Obama’s plan, mortgages provided by private-sector lenders that are bundled into securities and sold to investors could obtain a taxpayer guarantee in return for a fee, according to the White House.

The private sector would have to shoulder some of the initial losses if defaults were to rise, a condition usually triggered by falling home prices. After that, taxpayers would absorb the remainder of losses stemming from an extreme downturn in the nation’s property market. The insurance fee collected by the government should be “actuarially-fair,” the White House said, meaning it should equal the expected payout.

Though short on specifics, Obama’s endorsement of such a plan marks a turning point in the ongoing Washington debate over how to reform the nation’s housing finance system. Five years after twin housing giants Fannie Mae and Freddie Mac were rescued by taxpayers, policymakers have struggled to advance a proposal that would ensure continued access to a bedrock of the U.S. housing market — the fixed-rate 30-year mortgage — but also would reduce the government’s role in funding home loans.

The White House had avoided publicly weighing in on how to reform Fannie Mae and Freddie Mac. In 2011, the administration outlined three policy options. Though it had quickly narrowed those options to a few core ideas, officials have said, the administration refrained from publicly discussing them out of fear White House involvement would poison discussions on Capitol Hill.

Julia Gordon, director of housing finance and policy at the progressive advocacy organization Center for American Progress, praised Obama’s expected remarks for having the discussion about the future of housing policy in the context of “middle-out economics,” rather than focusing on investors and asset classes. Obama is in the middle of delivering a series of policy speeches discussing ways to improve the economy by emphasizing middle-class households.

Fannie Mae and Freddie Mac own or guarantee nearly half of all outstanding home loans. In the aftermath of the 2008 financial crisis, Fannie Mae, Freddie Mac and the rest of the U.S. government have backstopped more than 90 percent of new home loans. Taxpayers now own or guarantee roughly three of every five outstanding mortgages.

The cost of a taxpayer guarantee could be high, especially if the administration’s preference is for the fees to equal expected payouts. A senior administration official said that the cost of the current system, which helped lead to the financial crisis, was “trillions and trillions of dollars in lost equity that we are still rebuilding.”

If the plan ultimately is signed into law, “ credit would be modestly more expensive than it was,” the official said.

Policy analysts reckoned there’s little chance Obama’s plan could make it into law before the 2014 election, despite what appears to be a growing bipartisan consensus on the future of U.S. housing finance.

Taxpayers pumped in nearly $190 billion to save Fannie Mae and Freddie Mac so the companies could continue to make good on guarantees that investors were counting on. Now reporting record profits thanks to conservative lending standards, fewer defaults and rising home prices, the companies have returned more than $130 billion to the U.S. Treasury.

Obama’s plan resembles legislation put forward by a bipartisan group of senators led by Bob Corker (R-Tenn.) and Mark Warner (D-Virginia). The lawmakers call for a public entity that would offer a government guarantee to issuers of mortgage bonds that would guarantee investors against losses. Those issuers would have to have sufficient capital to cover up to 10 percent of losses from defaults, after which taxpayers would step in.

Industry and consumer groups ranging from the Mortgage Bankers Association to the Consumer Federation of America have endorsed key planks of the Corker-Warner proposal.

The senior administration official said the Corker-Warner proposal was “consistent” with Obama’s ideas to reform housing finance, though the official said the proposal fell short in ensuring continued access to credit for first-time home buyers or in providing for rental housing.

Still, a powerful group of House Republicans is trying to advance a proposal that would drastically reduce taxpayer involvement in the housing sector. They remain a roadblock to any deal.

House and Senate Republicans are likely to object to other ideas Obama will attempt to advance on Tuesday, such as a government initiative that would allow more borrowers to refinance their home loans into cheaper, taxpayer-backed mortgages.

The site of Obama’s address on Tuesday is a short distance from the spot where the president announced his signature anti-foreclosure effort at the outset of his presidency. At a high school in the Phoenix suburb of Mesa, Obama explained how his mortgage modification program would work and how many people it would help.

In February 2009, Obama said that up to 4 million homeowners would be able to modify the terms of their mortgages under a government plan that would cap payments to income and prevent foreclosures.

The effort, known as the Home Affordable Modification Program, has fallen far short of its goal.

Sheila Bair, the Republican former head of the Federal Deposit Insurance Corp. who has been praised by consumer advocates and liberal Democrats, wrote in her book after leaving government service that she “cringed” when Obama said he’d save 4 million borrowers from foreclosure .

“At the Phoenix announcement, the president was masterful in announcing the program, though I cringed as he threw out what I considered to be wildly inflated numbers on the programs’ impact,” Bair wrote. “Even with our own, more aggressive proposal, we had estimated the number of successful modifications at 2.1 million tops.”

Bair said many borrowers who entered HAMP ultimately were cheated.

Through May, fewer than 880,000 borrowers were making payments on new HAMP mortgages. Originally a $50 billion commitment, the program has shrunk to about $38 billion. Less than $9 billion has been spent so far on housing programs under the bank bailout program known as TARP.

Drop In Jobless Rate Puts Fed Closer To Ending Bond Buys

Drop In Jobless Rate Puts Fed Closer To Ending Bond Buys

The Federal Reserve is nearer to dialing back its massive bond-buying program after the unemployment rate dropped last month, a top Fed official said on Monday, adding that he wants reductions to start this fall.

The U.S. central bank is buying $85 billion in long-term securities each month in order to keep interest rates low and boost hiring and investment. Fed Chairman Ben Bernanke said in June that the Fed would probably make cuts to the program later this year, with an eye to ending it by mid-2014, when unemployment will likely be around 7 percent.

“Having stated this quite clearly, and with the unemployment rate having come down to 7.4 percent, I would say that the (Fed’s policy-setting) committee is now closer to execution mode, pondering the right time to begin reducing its purchases, assuming there is no intervening reversal in economic momentum in coming months,” Dallas Federal Reserve Bank President Richard Fisher said in remarks prepared for delivery to the National Association of State Retirement Administrators.

4 Steps To Negotiatng A Good Deal

Here are four things you should consider when negotiating a great deal on a potential new home, Keep in mind when attempting to bid on a home that if you go too high you’ll wish you would have gone lower, but at the same time going too low and you can hurt your chances of getting the home you desire.

The first thing you need to do is prepare yourself; Knowing more information about the property you want allows you to have more control over price negotiations and allows you to know what your max bid should be. Things like hiring a home inspector to help find out what repairs are needed to the home can help you get a home for cheaper or possibly give you the ability to negotiate the current owner of the home to fix these repairs. Another helpful thing to know about is the properties history with certain information and circumstances you can help yourself negotiate a better deal by knowing some things such as how long the property has been listed, a property on the market for a longer period of time you can attempt to go lower than you normally may. Also things like relisting’s, short sales or foreclosures or unique things about the property. Also after finding out property information you also may want to find out information about the seller which could potentially have them motivated to sell the home such as needing to move out quickly or getting a divorce.

The second thing to make sure of when negotiating is always be polite. Negotiating with the seller face to face is a starting point, as it makes it a more real thing and lets them know you’re serious about your interest. Also consider this negation to be like any other business deal, you can always offer a low price that helps you but by throwing something extra to the seller might have them more willing to accept the offer, for example letting them chose the closing date. Always be as professional as possible and courteous but don’t let the seller bully you at the same time. Always be out to try and achieve a win-win with your seller.

Number three, Modesty is key. Look at it as a game of poker try to keep things in your favor by not letting the seller see all of the cards up your sleeve. Example may be not letting them now how you plan on paying for the home which may change the way he goes about the price. And very important to always try to remain emotionally detached as falling in love with a home can be the death of a good negotiation and is usually something a seller can see and some will take advantage of this fact. Always remember there are plenty of houses for sale and other options will almost always exist. When given a counter offer, don’t respond to it instantly but be sure to sleep on it and make sure you have everything planned out be it to propose another counter offer or accept the deal.

Finally always be wise. Once you and the seller have finally come to an agreement, make sure to get everything in writing. Make sure you fully understand all of the costs that come with a home outside of just the mortgage.

A Negotiating game done correctly is one in which all parties can walk away happy. So prepare yourself, and get ready to enjoy your new home.