October 2015 -Allegheny Twp, PA
Photo by Amy S Myers
So you have looking for many weeks, browsing around at homes online and maybe doing some drive by’s in the car – checking out the neighborhood.Â Â But you are wondering how much can youÂ afford each month.
Usually the next step is to get pre-approved.Â Your mortgage rep will be able to give you that information.Â They will calculate your monthly payment at usually 15, 20 or 30 years, with your down payment.Â They will also include your yearly real estate taxes and home owner’s insurance.
If you are not quite that ready to call someone yet, check out this mortgage calculator and run your own numbers.
Every day I continue to read great things about Pittsburgh.Â After the steel industry went out years ago,Â focus was put into education centers and that blossomed into a city with great strength in healthcare and technology.
“Unemployment is 5.5 percent, far below the national average. While housing prices sank nearly everywhere in the last year, they rose here. Wages are also up. Foreclosures are comparatively uncommon.
A generation ago, the steel industry that built Pittsburgh and still dominated its economy entered its death throes. In the early 1980s, the city was being talked about the way Detroit is now. Its very survival was in question. ”
Read more about what they have to say.
Great news with this new year ahead.Â Mortgage rates still Historically Low.Â Take advantage of the low rates before they disappear.
“RISMEDIA, Mortgage rates remained low last week and many states saw sub-5.00 percent rates for the first time in recent history. The weekly average rates for 30-year fixed mortgages declined to 4.96 percent, down from 5.15 percent the week prior, according to the Zillow Mortgage Rate Monitor, compiled by leading real estate Web site Zillow.com(R). Rates for 15-year fixed mortgages decreased to 4.91 percent, down from 5.00 percent and 5-1 adjustable rate mortgages decreased significantly to 5.54 percent from 5.94 percent.”
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Also, Todd Fletcher, a Pittsburgh area mortgage broker agrees and give tips below on how rate locks work:
“Rate Lock Duration Lock durations can vary for mortgage financing, but most lenders lock in the interest rate for 60 days from the date the loan application is submitted. As long as the loan is closed within that lock-in period, the lender honors the agreed upon interest rate.
Some consumers are misled by advertising that quotes unrealistically low rates based on 15- or 30-day lock durations. This is called ‘short-pricing.’ The lender basically knows the borrower doesn’t have time to meet their conditions and have all the necessary paperwork in order within that brief time period. As a result, the lender is not obligated to honor the low rate that was listed in their advertising.
For simple refinance transactions, a 45-day lock-in period is more realistic. For purchase transactions, which are typically much more complex, you’re much safer going with a 60-day lock, even though the interest rate might be a little higher than the rate you see quoted on billboards and the Internet.
Borrowers should make sure they have a written rate lock agreement, and allow themselves a reasonable amount of time to close their loan. I prefer to lock in all my clients as soon as their application is filed, rather than gamble with predicting short-term interest rate movement. My team and I focus more on assisting clients with long-term goals and management of their mortgage debt to secure a strong financial future.”
Equity Lending Group
If you are thinking of buying a house – Wow! I could not believe it when I got the rate quote from our in house lender for today. This rate is amazing. Shop the rates and see what is out there. This is probably one of the best times to buy a home ( interest rate being the key ) in the last 40 plus years. Take advantage of it while you can, you don’t know how much time will be left to take advantage of this buyers market.
30 Year Fixed – Conventional, 4.875%, 0 points (Keep in mind rates are subject to change based on market conditions, credit score and LTV).
It’s staggering when you think about the cost of living, especially if you’re a renter and not a home owner. If you are currently paying $1,000 a month for rented housing, over the next three years your property management company will effectively have reaped $36,000 of your hard earned cash. In most cases, you know your rent will go up every year, even if you live in an area that has rent control regulations. You’re paying the mortgage for the property owner, when you could be building equity in your own real estate investment.
The tax deductions available to homeowners vary, but there are solid rules the IRS lines out for us. Real estate taxes, mortgage interest, pre-paid interest, and interest on construction loans are all things to take into consideration as tax benefits.
Author: Todd Fletcher
Equity Lending Group
Published with Permission
If you or someone you know is currently renting, inquire about the many low- and no-down payment loan programs that are currently available to prospective home buyers.
If you are renting seriously think about buying don’t give up. I have many people come to me and think their credit scores or too poor or they don’t have enough money. I suggest that they talk to their mortgage agent or suggest a few for them to speak to. Sometimes it is true and sometimes it is not. I closed a house this month, and the buyer had a 581 credit score. A score like this does not mean a loan will definitely go through, but you – never know. There are many things that go into getting a loan approved. – Amy
For 2009, Pittsburgh comes in as one of the Best Places to Raise Kids in the state of Pennsylvania.Â BusinessWeek just released their second annual list of best places to raise your kids and Pittsburgh made it.
BW worked with OnBoard Informatics, a Manhattan-based provider of real estate analysis, and concluded each state’s most affordable towns when raising children.Â The analysis was compiled with cities containing 50,000 residents and family median income of $40K to $100K.Â Other factors came into play as well but affordability came in weighing strong.
Check out the article and see if you have friends and family in some of the other ranked cities.
You know with all the things going on in the financial markets I was quite surprised to get an email from the financing company in our office informing me that 100% financing is out there.Â Sure there may be some qualifications but wow that is great!
It is available for Select Buyers and Properties through USDA Rural Development Programs.
– 100% Financing Off of the Appraised Value
– No Monthly Mortgage Insurance
– No Cash Reserves Required
– No Limit on Gift Money or Seller Concessions
– There is Flexible Credit and Qualifying Guidelines.
You know I visit seller’s and everyone has their own reason’s and needs for selling their home.Â Did you know that the number one thing that sells a home is the price.Â Â Of course, we all want a great price for our home but a seller does need to be realistic.Â You need to ask your agent to get comparable homes in the neighborhood that have recently sold.Â Right now it is certainly a buyer’s market.
Your home should be priced properly to avoid getting stale on the market.Â The most important time for a listing is the first 30 days.Â If you listed your home at a higher price to start don’t leave it that way too long.Â If you have it competitively priced, you can increase your changes of getting multiple offers, especially if this is done right when first going on the market.
Interest rates fell today.Â There are home loans available as low as 5 3/4 % 30 year fixed with zero points.Â Jumbo rates are great too.Â These are the best rates in the last 4-5 months.Â If you are sitting on the fence thinking of buying, it is a great time.Â You don’t know how long the rates will stay this way.Â If you or anyone you know needs a pre-approval, let me know.Â Enjoy your day!