Monday, December 27, 2010
Thursday, December 23, 2010
USDA Program Makes "Rural" Homes More Accessible" - Mortgage Rate Update compliments of Canyon Park Mortgage
One of the biggest difficulties many first-time home buyers face is a lack of down payment and the necessary funds for closing costs. However, even with the widespread availability of "no-money-down programs" evaporating in the credit crisis, one national no-down payment program still remains: USDA Rural Development home loans.
Guaranteed by the USDA (United States Department of Agriculture), this program might make you think that you have to buy farmland or live "in the country" to qualify, but this is often not the case. In fact, you might be surprised to see just how many neighborhoods actually do qualify as rural development areas. For this program, the term "rural" really applies to those areas with a lower population or fewer homes, not necessarily those areas and neighborhood far outside of the city.
There are several benefits of the USDA loan program besides no money down. The program also does not require private monthly mortgage insurance, and the seller is allowed to pay all of your closing costs and pre-paid items up to 6.00% of the total sales price of the property. And while this is great news for first-time home buyers, it's important to note that you don't have to be a first-timer to qualify for a USDA loan. However, in most cases you cannot own another property at the time of closing a USDA mortgage.
Other than the location of the property you're seeking to buy, there is one other limitation to this valuable program that you must consider: your income. Luckily, however, these numbers have recently increased to allow more potential buyers take advantage of this special program. For households in non-high cost areas, with up to four people, the income limit can be over $70,000 (every area will be different). In households where 5-8 people reside, the income limitation can be over $90,000 (again, every area will be different). These income limitations are guidelines and, in some cases, may be exceeded.
To find out more about USDA loans, give us a call. We can have an answer as to whether you qualify for this program in just a few minutes.
For more information and income limits, go to http://eligibility.sc.egov.usda.gov.
Mortgage Interest Rates for Fixed Rate Mortgages*
Rates as of Thursday, 23rd December, 2010:
Term Conforming APR Payment per
$1,000 Jumbo APR Payment per
$1,000
30-Yr. fixed 360 4.875% 5.002% $5.29 5.625% 5.764% $5.76
15-Yr. fixed 180 4.125% 4.341% $7.46 5.25% 5.483% $8.04
7-Yr. fixed ARM 360 3.75% 3.869% $4.63 4.5% 4.630% $5.07
5-Yr. fixed ARM 360 3.375% 3.492% $4.42 4.125% 4.252% $4.85
3-Yr. fixed ARM 360 3.25% 3.366% $4.35 % 0.000% $0.00
*Rates are subject to change due to market fluctuations and borrower's eligibility.
Calculations based on the following scenarios: Conforming loan amount $375,000 - Total closing costs, fees, etc. $5500 Jumbo loan amount $750,000 - Total closing costs, fees, etc. $11,500 RATES SUBJECT TO CHANGE WITHOUT NOTIFICATION Equal Opportunity Lender
Guaranteed by the USDA (United States Department of Agriculture), this program might make you think that you have to buy farmland or live "in the country" to qualify, but this is often not the case. In fact, you might be surprised to see just how many neighborhoods actually do qualify as rural development areas. For this program, the term "rural" really applies to those areas with a lower population or fewer homes, not necessarily those areas and neighborhood far outside of the city.
There are several benefits of the USDA loan program besides no money down. The program also does not require private monthly mortgage insurance, and the seller is allowed to pay all of your closing costs and pre-paid items up to 6.00% of the total sales price of the property. And while this is great news for first-time home buyers, it's important to note that you don't have to be a first-timer to qualify for a USDA loan. However, in most cases you cannot own another property at the time of closing a USDA mortgage.
Other than the location of the property you're seeking to buy, there is one other limitation to this valuable program that you must consider: your income. Luckily, however, these numbers have recently increased to allow more potential buyers take advantage of this special program. For households in non-high cost areas, with up to four people, the income limit can be over $70,000 (every area will be different). In households where 5-8 people reside, the income limitation can be over $90,000 (again, every area will be different). These income limitations are guidelines and, in some cases, may be exceeded.
To find out more about USDA loans, give us a call. We can have an answer as to whether you qualify for this program in just a few minutes.
For more information and income limits, go to http://eligibility.sc.egov.usda.gov.
Mortgage Interest Rates for Fixed Rate Mortgages*
Rates as of Thursday, 23rd December, 2010:
Term Conforming APR Payment per
$1,000 Jumbo APR Payment per
$1,000
30-Yr. fixed 360 4.875% 5.002% $5.29 5.625% 5.764% $5.76
15-Yr. fixed 180 4.125% 4.341% $7.46 5.25% 5.483% $8.04
7-Yr. fixed ARM 360 3.75% 3.869% $4.63 4.5% 4.630% $5.07
5-Yr. fixed ARM 360 3.375% 3.492% $4.42 4.125% 4.252% $4.85
3-Yr. fixed ARM 360 3.25% 3.366% $4.35 % 0.000% $0.00
*Rates are subject to change due to market fluctuations and borrower's eligibility.
Calculations based on the following scenarios: Conforming loan amount $375,000 - Total closing costs, fees, etc. $5500 Jumbo loan amount $750,000 - Total closing costs, fees, etc. $11,500 RATES SUBJECT TO CHANGE WITHOUT NOTIFICATION Equal Opportunity Lender
Serious Buyers will enjoy favoable affordability conditions in to the New Year.
NAR President Ron Phipps, broker-president of Phipps Realty in Warwick, R.I., believes that the trend of buyer activity will continue. "Traditionally there are far fewer buyers competing for properties at this time of the year, so serious buyers have a lot of opportunities during the winter months," he said. "Buyers will enjoy favorable affordability conditions into the new year, although mortgage rates are expected to gradually rise as 2011 progresses."
see more info:
Realty Times - Existing-Home Sales Rise
see more info:
Realty Times - Existing-Home Sales Rise
Tuesday, December 21, 2010
Monday, December 13, 2010
Don't Wait!
Mortgage Rates are pushing higher
Mortgage bond prices got crushed last week pushing mortgage interest rates significantly higher. News that tax cuts would be extended sent stocks higher Tuesday at the expense of bonds. Market participants remained concerned about the cost of the tax cuts. We saw a slight reprieve Thursday afternoon following a strong 30-year Treasury bond auction. However, this was short-lived and Friday brought more losses for bonds as consumer sentiment data was stronger than expected. Unfortunately interest rates were worse by about a full discount point for the week.
Look for the inflation data and the Fed meeting to take center stage this week. Producer inflation estimates are higher than the prior month. Inflation, real or perceived, generally erodes the value of fixed income investments causing prices to fall and rates to rise.
LOOKING AHEAD
| Economic | Release | Consensus |
|
| Producer Price Index | Tuesday, Dec. 14, | Up 0.5%, | Important. An indication of inflationary pressures at the producer level. Weaker figures may lead to lower rates. |
| Retail Sales | Tuesday, Dec. 14, | Up 0.8% | Important. A measure of consumer demand. A smaller than expected increase may lead to lower mortgage rates. |
| Business Inventories | Tuesday, Dec. 14, | Up 0.6% | Low importance. An indication of stored-up capacity. A significantly larger increase may lead to lower rates. |
| Fed Meeting Adjourns | Tuesday, Dec. 14, | No rate changes | Important. Few expect the Fed to raise rates, but some volatility may surround the adjournment of this meeting. |
| Consumer Price Index | Wednesday, Dec. 15, | Up 0.2%, | Important. A measure of inflation at the consumer level. Lower than expected increases may lead to lower rates. |
| Industrial Production | Wednesday, Dec. 15, | Up 0.3% | Important. A measure of manufacturing sector strength. A lower than expected increase may lead to lower rates. |
| Capacity Utilization | Wednesday, Dec. 15, | 75% | Important. A figure above 85% is viewed as inflationary. Weakness may lead to lower rates. |
| Housing Starts | Thursday, Dec. 16, | 540k | Important. A measure of housing sector strength. Weakness may lead to lower rates. |
| Philadelphia Fed Survey | Thursday, Dec. 16, | 14 | Moderately important. A survey of business conditions in the Northeast. Weakness may lead to lower rates. |
| Leading Economic Indicators | Friday, Dec. 17, | Up 1.2% | Important. An indication of future economic activity. A smaller increase may lead to lower rates. |
Volatility Likely The likeliness of mortgage interest rate volatility this week is very high considering the abundance of important economic releases.
Each piece of data has the ability to cause volatility in the financial markets. Floating ahead of the data exposes a person to a tremendous amount of risk. It is possible for interest rates to improve if the data shows weakness in the economy with few price pressures. However, any surprises will likely be bad for mortgage interest rates.
We are really in uncharted territory here with the huge market swings as of late. The important thing is to remain cautious during these times of uncertainty.
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