Tag Archives: low mortgage rates

Rates are Still a Great Reason to Buy Now

Only a few days left here in the housing market to get under contract by October 1 ( to get closed and qualify for the first time homebuyer tax credit). So if you can’t get the tax credit, do you still have reason to be in a hurry to buy? Well sure you do. You never know when the rates will start heading up and they are still low according to this recent report. Rates are down from this time a year ago. It is still a buyers market with seller’s and their agents having to be creative to get houses sold. Inventory is still plenty, giving sellers plenty of competition.

I can tell you that buyers are sweeping up the deals. I just had someone ask to see three homes this morning and all three were under contract. Another buyer isn’t moving fast enough and are being beat out by other buyers when the deals are there. Don’t think too hard or long if you see something you like. Chance are it is catching other buyer’s eyes too.

Great News! Tax Credit Can Be Used for Down Payment

Exciting news has hit the housing market. FHA is allowing its lenders to apply the $8000 tax credit to the down payment when purchasing a home for first time home buyers.  Great reasons to buy today:

1)Â Interests Rates are Historically Low

2)Â Housing Inventory is plenty

3)Â Up to $8,000 tax credit

There are also, special programs in certain areas where you can get no money down and closing cost assistance. If you are in need of that, please inquire.

Here is what Realtor.org had to say:

“Shaun Donovan, secretary of the U.S. Department of Housing and Urban Development, on Tuesday said that the Federal Housing Administration is going to permit its lenders to allow home buyers to use the $8,000 tax credit as a down payment.

Previously, most buyers wouldn’t receive the funds until after they filed their tax return, and that deterred some people from using the credit. The NATIONAL ASSOCIATION OF REALTORS® has been calling for the change.

“We all want to enable FHA consumers to access the home buyer tax credit funds when they close on their home loans so that the cash can be used as a down payment,” Donovan says. His remarks came in an address to several thousand REALTORS® gathered Tuesday morning at “The Real Estate Summit: Advancing the U.S. Economy,” at the 2009 REALTORS® Midyear Legislative Meetings & Trade Expo in Washington, D.C..

He says FHA’s approved lenders will be permitted to “monetize” the tax credit through short-term bridge loans. This will allow eligible home buyers to access the funds immediately at the closing table.”

-Realtor.org Read More . . . .

Check with your lender on specifics and further qualifications for your situation.

Previous Posts

First-Time Homebuyer Federal Tax Credit Info

First-Time Homebuyer Tax Credit Details

How Low Can They Go?

Mortgage rates hit another all time low today! It is one of the best times ever to buy. Don’t pass up this moment in time. If you are not sure if you can qualify for a loan, at least talk to a loan officer and see what your options are. You never know.

“Just one week after 30-year mortgage rates fell to a record low of 4.85 percent, the average dropped even further to 4.78 percent this week, Freddie Mac reported.

Refinancing activity has picked up because of the low rates, and the Mortgage Bankers Association says approximately 80 percent of mortgage applications came from borrowers seeking to refinance.”

– Source: Boston Globe (04/03/09)

Mortgage Rates Hit Historic Record in 2009

There are so many great reasons to buy a home now. Mortgage rates were at a historic low already this year and are still great. There is also the first-time home buyer credit and a large amount of inventory. With all the incentives, you won’t want to pass this point in time without buying that home.

Check out a recent news statement on the mortgage market:

“Share Loan Apps Rise as Rates Dip Below 5 Percent
Average mortgage rates dipped below 5 percent last week, driving mortgage application volume up 11.3 percent to 723.4 from 649.7 the previous week on an adjusted basis, according to the Mortgage Bankers Association weekly survey.

On an unadjusted basis, the index increased 11.6 percent compared with the previous week and was up 5.7 percent compared with the same week a year ago.

The increase was reflected in the government purchase index (mostly FHA), which rose 10.4 percent. The overall purchase index was up 7.1 percent. The refinance share increased to 67.9 percent, up slightly from the previous week when it was at 66.9 percent.

Mortgage rates were down to the second-lowest rate in the history of the survey, with the record low being 4.89 percent for the week ending Jan. 9, 2009.

30-year fixed-rate mortgages decreased to 4.96 percent from 5.14 percent
15-year fixed-rate mortgages decreased to 4.54 percent from 4.73 percent
1-year ARMs increased to 6.21 percent

Source: Mortgage Bankers Association (03/11/2009)”

Quoted from: Realtor Magazine at Realtor.org

Mortgage Rates Still Historically Low

Great news with this new year ahead. Mortgage rates still Historically Low. 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.”

-Quoted from RISMEDIA

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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.”

Todd Fletcher
Mortgage Advisor
Equity Lending Group
Phone: 724-453-0335
Fax: 724-453-0463