As many of you are aware, I recently started as the community manager here at SmartHippo. I love the fact that this company is focused on helping the consumer make the most informed decision when getting a mortgage by providing a free advice section where you can ask questions and receive responses from mortgage professionals.

Since joining the team, one of my focuses was to think of tools that will assist real estate agents with the process of getting a mortgage for their clients. One way we have been able to achieve this goal is by the design of our newest release, the SmartHippo Mortgage Rates Widget. This widget gives consumers an easy way to compare the rates of multiple lenders in their area. They can simply enter a loan amount, a home value, and their zip code and instantly compare mortgage rates in their area.

So how exactly does it work? The widget searches the rates database from SmartHippo of lenders who share their information on our platform. Buyers can then simply see the list of rates, closing costs and compare them. They can then even apply for the loan directly from that page.

Why would a real estate agent want to use this widget? In the real estate industry agents are always hesitant to recommend any other businesses because if something goes wrong the client will inevitably come back and say “you recommended this person and now it all went wrong!” When you give the consumer a third party option where they can get the information on multiple sources with reviews from actual consumers who have used the company and expressed their opinions about the service they received.

So what does this look like? Take a look and tell me your thoughts:

Mortgage rates by

Get this widget

How do you get the widget installed on your blog or website? It is actually really easy to do. Simply visit the Mortgage Rates Widget page on SmartHippo, and grab the code needed to install this widget. The steps are really easy to do and this widget can be installed in less than 2 minutes time. The widget will work on any type of website or blog that accepts HTML code. Here is a simple video on how to install:

I hope this new widget is a benefit to you and you consumers! Let me know what you think of it!

As I mentioned in my previous post, SmartHippo is proud to announce their newest collaborative project, The Herd which is a multi-authored blog to offer consumers a guide to making the most informed decisions possible when getting a mortgage.  This multi-authored blog will be filled with informative content from some of the top bloggers in the mortgage industry.

Today, SmartHippo is proud to announce our first writer on The Herd, Ken Cook. Ken is a native of Atlanta, Georgia and has been in small business, real estate and finance since 1979. As a son of a real estate developer, builder and investor he got his first glimpse of how banking and finance works all the way back in 1973 when, at the age of 14, he began working with his father.

Since then he has served as Director of Operations and Business Development for iMG, Director of Operations for NovaStar Home Mortgage, Senior Partner in USAHD a real estate company, and Director of Operations for Novation Mortgage. During each of these tenures he used online marketing and social media to boost awareness of the companies and their services.

He currently serves as Senior Mortgage Lender at AmericaHomeKey, Inc., and as founder and co-host of the popular social media radio show on Blog Talk Radio, Social Media Edge as well as host of the real estate techno-centric REtechRadio show.

Ken has already been very busy writing on The Herd with his first two articles, New Mortgage Closing Costs Disclosures and Online Mortgage Shopping Tips. Make sure you stop by Ken’s posts and leave a comment welcoming him to The Herd.  We at SmartHippo are very excited to work with Ken to help bring our consumers some of the highest quality content possible to make an informed decision when applying for a mortgage.

Make sure you visit The Herd and subscribe to The Herd.  If you are a lender reading this and you would like to be considered as a contributor on The Herd, contact me here.

In a constant effort to provide consumers with more information about getting a mortgage, SmartHippo has embarked on a new project called “The Herd.” Consumers are constantly looking for mortgage advice, mortgage information and commentary.  We at SmartHippo realized the major need and have since created our newest service for those shopping for a mortgage online.

So what is The Herd? This is a simple one. The Herd is a collaborative blog put together by some of the top mortgage brokers, lenders, and companies in the mortgage industry.  These members will be sharing their advice and expertise on shopping for an online mortgage regularly on The Herd.  We at SmartHippo figured the best way to give our clients the highest quality information about getting a mortgage was to bring together some of the best in the mortgage industry to share their expertise. Our goal is to deliver extraordinary information to consumers so that they can make an educated decision when applying for a mortgage.

Why is it called The Herd? The name came from our company name, SmartHippo.  Obviously, our company was named after hippos.  Hippopotamus’s are known for traveling in groups or herds that look out for each other.  One or two mothers will sometimes watch the entire herd of babies.  That same concept is what SmartHippo is implementing with this latest collaborative project.  To protect consumers who are not used to getting a mortgage, supplying them with a wealth of knowledge and information so that they can get a mortgage in confidence.

What will be covered by The Herd? The Herd Blog will cover a wide variety of topics over the next few months like:

• Applying for an online mortgage tips.
• USDA loans
• FHA Loans
• Yield Spread Premium
• What are points & discount points
• Average Closing Times.

This is just a sampling of upcoming posts from our writers.  If there is something in addition to this that you would like to see one of our writers cover, feel free to leave a comment below and I will pass the idea onto our writers.

We at SmartHippo are excited about this new project and hope that it will assist consumers in making a more informed decision to purchase a home.  So make sure you visit The Herd and subscribe to The Herd.  If you are a lender reading this and you would like to be considered as a contributor on The Herd, contact me here.

Consumer Sentiment has been on the rise since last February and it’s something to which home buyers should pay attention. 

The affordability of your next home may hinge on consumer confidence.

As the economy recovers from a near-the-brink recession, many of the elements of a full recovery are in place.  Business investment is returning, household spending is expanding, and financial systems are gaining strength. 

Consumer confidence is at a 2-year high.

What’s missing from the recovery, though, is jobs growth.  Another net 20,000 jobs were lost in January. Data like that hinders economic growth.

That said, twenty-thousand jobs lost is a much better figure than the several hundred thousand that were shed per month throughout early-2009, but it’s still a net negative number.  Not only does household income drop when Americans lose jobs but so does the average American’s confidence in his or her own economic future.

This is one reason why jobs growth is so closely watched by Wall Street — jobs are linked to higher confidence levels which, in turn, is believed to spur consumer spending.

Consumer spending represents 70% of the U.S. economy.

As confidence rises, it could be good news for the economy, but bad news for home buyers. More spending expands the economy and, all things equal, that leads mortgage rates higher. 

Same for home prices. More confidence means more buyers which, in turn, squeezes the supply-and-demand curve in favor of sellers.

Later this morning, the University of Michigan will release its February Consumer Sentiment survey. If the reading is higher-than-expected, prepare for mortgage rates to rise and home affordability to worsen.

Foreclosures stories dominate the national housing news. It seems at least one foreclosure-related story makes its way to the front page or the nightly news every week.

But for as much as the foreclosure filing statistics can be astounding — over 300,000 homes were served last month alone — the prevalence of foreclosures depends on where you live.

As reported by RealtyTrac, just 4 states accounted for more than half of the country’s foreclosure-related activity last month.

• California : 22.7 percent of all activity
• Florida : 14.9 percent of all activity
• Arizona : 6.7 percent of all activity
• Illinois : 5.7 percent of all activity

The other 46 states (and Washington D.C.) claimed the remaining 49.9%.

However, just because foreclosures are concentrated geographically, that doesn’t make them less important to homebuyers around the country.  There’s been more than 1.4 million foreclosure filings in the last 12 months and that’s a figure that can’t be ignored.

Distressed properties now play a role in one-third of all home resales.

Therefore, if you’re in the market for a foreclosed home, here’s a few things to keep in mind.

1. Properties are usually sold “as-is” and may not be up to living standards. Be sure to physically inspect the home before buying it.
2. Buying a home from a bank is rarely as streamlined as buying from an individual homeowner. Be prepared for delays and long closings.
3. Foreclosures aren’t always listed for sale publicly. Ask your real estate agent how to access the complete foreclosure inventory.

In order to use the federal homebuyer tax credit, you must be under contract for a home by April 30, 2010 and closed by June 30, 2010.  That doesn’t leave much time to find a bank-owned home and make it to closing.  If you’re serious about buying foreclosures, it’s probably best to start your search soon.

The mortgage lending landscape changes a lot.  Rates and guidelines are in constant flux, and it creates preparedness challenges for buyers that aren’t paying in cash.

The loan you get today won’t always be the loan you get tomorrow.

Because of how frequently bank rules are changing, it can be hard for laypersons to distinguish between mortgage fact and fiction of “what’s coming next”.

Recently, we saw this with respect to FHA home loans.

January 20, 2010, the FHA issued a press release with new lending guidelines.  Specifically, it announced 3 changes that will be effective starting April 5, 2010:

1. Upfront mortgage insurance premiums increase from 1.75% to 2.25%
2. Allowable seller concession reduced from 6% to 3%
3. FICO scores of 580 or lower are subject to a minimum 10% downpayment

But, also in its official statement, the FHA announced it would ask Congress for permission to raise monthly mortgage insurance premiums.  This is where the rumors started.

Nestled on page 348 of the Budget of the United States Government, Fiscal Year 2011, in a section titled Special Topics, there is a 1-paragraph notation that details the FHA’s petition. 

1. Raise monthly premiums by roughly 0.30%, or $25 per $100,000 borrowed per month
2. Lower upfront mortgage insurance premiums by 1.25%, or $1,250 per $100,000 borrowed at closing

For now, the request is neither approved nor acknowledged by Congress. It’s merely a request. And in the event that Congress does approves it, that doesn’t mean that FHA has to stand by its initial projections.

Truth is, about the only thing we know about the future of FHA lending is that, come April 5, 2010, borrowing money is going to be tougher, and mortgage expensive. These are the facts as we know them today.

Homebuyers should plan accordingly.

The mortgage lending landscape changes a lot.  Rates and guidelines are in constant flux, and it creates preparedness challenges for buyers that aren’t paying in cash.

The loan you get today won’t always be the loan you get tomorrow.

Because of how frequently bank rules are changing, it can be hard for laypersons to distinguish between mortgage fact and fiction of “what’s coming next”.

Recently, we saw this with respect to FHA home loans.

January 20, 2010, the FHA issued a press release with new lending guidelines.  Specifically, it announced 3 changes that will be effective starting April 5, 2010:

1. Upfront mortgage insurance premiums increase from 1.75% to 2.25%
2. Allowable seller concession reduced from 6% to 3%
3. FICO scores of 580 or lower are subject to a minimum 10% downpayment

But, also in its official statement, the FHA announced it would ask Congress for permission to raise monthly mortgage insurance premiums.  This is where the rumors started.

Nestled on page 348 of the Budget of the United States Government, Fiscal Year 2011, in a section titled Special Topics, there is a 1-paragraph notation that details the FHA’s petition. 

1. Raise monthly premiums by roughly 0.30%, or $25 per $100,000 borrowed per month
2. Lower upfront mortgage insurance premiums by 1.25%, or $1,250 per $100,000 borrowed at closing

For now, the request is neither approved nor acknowledged by Congress. It’s merely a request. And in the event that Congress does approves it, that doesn’t mean that FHA has to stand by its initial projections.

Truth is, about the only thing we know about the future of FHA lending is that, come April 5, 2010, borrowing money is going to be tougher, and more expensive. These are the facts as we know them today.

Homebuyers should plan accordingly.

Mortgage markets improved last week on domestic jobs data and international banking concerns. The news triggered buying in the bond market and, as a result, conventional, FHA and VA mortgage rates improved for the 4th consecutive week.

Mortgage rates are now at a 6-week low but probably shouldn’t be.  It underscores just how important global events can be to U.S. mortgage markets.

For example, corporate earnings continue to improve and key elements of the economy are strengthening.  Even the Federal Reserve acknowledges this.  In most circumstances, that would be a boon for the stock markets and bond markets would suffer, including mortgage bonds.

Last week, that wasn’t the case.

Early in the week, as (1) China tightened its monetary policy, (2) Greece did little to quell lingering default fears, and (3) Spain raised its deficit forecasts, global investors sought to reduce their collective risk exposure. For safety of principal, many sold some of their more aggressive positions and moved the cash proceeds into the U.S. bond market — which includes mortgage bonds. 

On Wall Street, this type of trading pattern is called a “flight-to-quality”.  Because mortgage bonds are backed by U.S. government entities, the debt is considered to be ultra-safe.  Last week’s extra demand for bonds helped to push prices up and mortgage rates down.

And that was before Friday’s weak jobs report. Although the Unemployment Rate fell to 9.7%, the government reported a net loss of 98,000 jobs last month and this, too, helped mortgage rates tick lower.

This week, we’ll hope for momentum to continue.

There’s very little domestic news to move rates this week so keep an eye on the global market for similar stories like what we saw last week.  Or, if you’re not sure what to look for, just give me a call or send me an email and I’ll be happy to watch the markets and mortgage rates for you.

As mortgage lenders tighten approval standards nationwide, the importance of a good credit score is rising.  Credit scores not only make the difference between a mortgage approval and mortgage turn-down, but they also play a large role in determining your actual mortgage note rate.

In the 3-minute piece, the NBC Today Show talks about 7 ways that homebuyers ruin their credit — often by accident.  Some of the highlighted mistakes include:

• Closing open credit cards
• Making appliance buys on credit prior to closing
• Asking creditors to lower credit balances prior to closing

In general, a 740 FICO will insulate a borrower from the higher costs and/or rates associated with low credit scores.  Below 740, though, every 20 points adds to the damage.  Watch the video and apply what you can to your own situation.  The more you know, the more you can save.

On the first Friday of every month, the U.S. government releases its Non-Farm Payrolls data from the month prior. The data is more commonly known as “the jobs report” and it swings a big stick on Wall Street.

Especially now — many analysts believe job growth is tightly linked to the future of the U.S. economy.

Therefore, when January’s jobs report hits the wires at 8:45 AM ET tomorrow, home buyers would do well to pay attention. A net job reading that is much higher (or lower) than Wall Street’s expectations can make a serious change in home affordability.

Wall Street expects that the economy added 13,000 jobs last month.  It would mark the second time in 3 months that the jobs report showed a net monthly gain.

In November 2008, the economy added 4,000.

Jobs matter to the economy for a lot of reasons, but one of the biggest is that when Americans are working, Americans are buying and consumer spending accounts for 70 percent of the economy.

Job growth spurs the economy and draws money to the stock market. Unfortunately for rate shoppers, that kind of stock market growth happens at the expense of the bond market which is where mortgage rates are made.

Good jobs data usually means higher mortgage rates.

Also, job growth can lead to higher home prices. This is because working homeowners are less likely to default on a mortgage versus non-working homeowners.  In this way, job growth helps hold foreclosures to a minimum which, in turn, suppresses the housing supply.

Less supply means higher prices for home buyers.

Mortgage rates are idling this morning in advance of tomorrow’s data.  If you’re shopping for a mortgage rate, the prudent play may be to lock your rate before the jobs data is released.  A jobs figure that’s higher than the 13,000 expected could cause rate to rise sharply.