Finance home repairs and improvements as part of your mortgage.
Considering a foreclosure, short sale or fixer-upper property, but not sure how you can finance the repairs? The FHA 203(k) Streamline Loan, offered by Allen Tate Mortgage, allows qualified borrowers purchase a home that needs repairs, and finance the cost of those repairs through the mortgage.
Contact us today for more information or to get started on your loan.
- Finance eligible repairs or renovations as part of the mortgage – up to $35,000.
- Work must begin within 30 days of closing and be completed within 6 months.
- Renovation funds are placed in escrow and contractors are paid as work is completed.
- Eligible improvements include non-structural repairs and renovations including roofs, HVAC, plumbing, painting, appliances, decks, windows, doors, siding, ADA improvements and more.
- Loan also available for home refinancing in conjunction with repairs/improvements.
- Loan limits apply; minimum credit score of 640 and minimum down payment required.
What does this mean…
Well…let’s think like a bank today. What happens to the market when rates spike… it creates a sense of urgency to buy before the deals are gone and prices go up!
When rates go up; who earns more interest on these new loans?… The answer is the banks do! So why are they waiting to release the remaining REO properties
in their portfolio? No one wants to sign off on a loss and admit they wrote a bad loan. The banks are waiting for rates to go higher and to create that sense of urgency to buy. This urgency causes sale prices to gradually spike as more and more people purchase these deals. Once the prices balance out, and we start to see a small light of a returning market, the banks will release the rest of their REO’s in order to minimize their potential loss. Higher sales prices = less of a loss, and higher rates = more interest earned.
All of the potential listing clients out there that want to sell this year, but plan to wait a little longer, are going to lose out. Once the banks see a better light, they will seize the opportunity to release the REO’s. Now your home must compete with a home the same size, same number of bedrooms and baths as yours, at a discounted price. So doesn’t it make sense to sell right now!
LIST that home TODAY, LISTEN TO YOUR AGENTS SUGGESTIONS and SELL FAST or get prepared to get COMFORTABLE where you are!
Does the current real estate market have you feeling the blues? Do you owe more than you can sell your home for? Well, take a look at refinancing. You can’t afford not to refinance now and start seeing some green.
There are two kinds of homeowners: those who have recently refinanced and those who have convinced themselves it won’t make a difference. If you’re in the second camp, take a look at the numbers below. Then let me connect you with my Mortgage consultant so you can start figuring out how to spend that extra money.
|Sale Price of Home
|Less Principal Paid
|Type of Financing
|LIFE OF LOAN SAVINGS
WASHINGTON (AP) — Mortgage rates fell this week to the lowest level on record, giving consumers added incentive to lock in low payments for home purchases and refinanced loans.
The average rate for 30-year fixed loans sank to 4.69 percent, from 4.75 percent last week, mortgage company Freddie Mac said Thursday.
That’s the lowest point since Freddie Mac began tracking rates in 1971. The previous record of 4.71 percent was set in December. Rates for 15-year and five-year mortgages also hit lows.
Mortgage rates have fallen over the past two months as nervous investors have shifted money into the safety of Treasury bonds. The demand for Treasurys has caused Treasury yields to fall. And mortgage rates tend to track the yields on long-term Treasurys.
Yet the falling rates have yet to spark a home-buying boom — or energize the economy. New-home sales collapsed in May after homebuying tax credits expired. The economy also remains under pressure from high unemployment. And many people don’t qualify under tightened lending rules.
“As long as prospective homebuyers are still concerned about their jobs and financial well-being, many will be reluctant to take the plunge, even though affordability has never been better,” said Greg McBride, senior financial analyst with Bankrate.com.
Low rates throughout the economy also hurt one group of Americans: savers. Puny rates are especially hard on people living on fixed incomes who are earning next to nothing on their savings.
Lending activity remains sluggish. Mortgage application volume dipped 6 percent last week from a week earlier, according to the Mortgage Bankers Association. Refinancing activity fell 7 percent. And mortgage applications to buy homes slipped 1.2 percent.
Many Americans owe more on their mortgages than their homes are worth — often called “under water” — and can’t refinance. The Obama administration has launched programs to help borrowers refinance if they owe up to 25 percent more than their home’s value and have loans owned or guaranteed by mortgage giants Freddie Mac or Fannie Mae.
About 291,000 homeowners have participated as of March. Yet that’s a small fraction of the nearly 15 million homeowners who are under water, according to Moody’s Economy.com, and cannot refinance. In hard-hit areas in Nevada and Florida, for example, home prices have fallen 50 percent or more from their highs. Record-low rates can’t rescue those homeowners.
“It’s not the desire to refinance; it’s the ability to refinance,” Chris Brown, a loan officer with Trinity Mortgage Co. in Orlando, Fla. “A lot of the people who can already have.”
Given the costs of refinancing, some mortgage experts say a refinancing can be worthwhile if you can shave at least 0.75 percentage point from an existing rate. Others suggest waiting until you can lower your rate by at least a point.
Despite some lenders’ ads, refinancing is never free. A fee normally goes to the mortgage broker or lender. There are also fees for title insurance, a new appraisal, document processing and other charges. Often, mortgage brokers or lenders create the appearance of a “no fee” mortgage by adding the costs to a total loan amount or by charging a higher interest rate.
People considering refinancing should factor in such fees. They should also calculate how many months it would take to recover them. For those who expect to stay in their home for two years or less, the fees might outweigh the savings from a lower rate.
Freddie Mac collects mortgage rates on Monday through Wednesday of each week from lenders around the country. Rates often fluctuate, even within a given day.
Rates on 15-year fixed-rate mortgages fell to an average of 4.13 percent. That was the lowest on records dating to September 1991. It was down from 4.2 percent a week earlier.
Rates on five-year adjustable-rate mortgages averaged 3.84 percent, down from 3.89 percent a week earlier. That was also the lowest on Freddie Mac’s records, which date back to January 2005 for such loans.
Average rates on one-year adjustable-rate mortgages fell to 3.77 percent from 3.82 percent. That was the lowest average since May 2004.
The rates do not include add-on fees known as points. One point is equal to 1 percent of the total loan amount.
The nationwide fee for loans in Freddie Mac’s survey averaged 0.7 a point for 30-year, 5-year and 1-year loans. The average fee for 15-year loans was 0.6 of a point.
Alan Zibel, AP Real Estate Writer, On Thursday June 24, 2010, 12:11 pm
The Federal Housing Administration (FHA) has announced major changes to its home lending programs that may affect you as you shop for a home.
These changes are effective for all loans received on or after April 5, 2010.
The first change is an increase in the upfront Mortgage Insurance Premium (MIP) from the current 1.75 percent to 2.25 percent. That means on $100,000 loan, the MIP will increase from $1,750 to $2,250. The good news is that since the MIP can be financed in the mortgage, the increase will not affect your out-of-pocket cash. On a $100,000 loan financed at a 5 percent interest rate, your monthly mortgage payment would increase from $546.22 to $548.90, a difference of just $2.68 a month.
The new FHA rules will also reduce allowable seller concession from 6 percent to 3 percent. Seller concessions may cover items such as closing costs, home repairs, etc. Usually, closing costs will fall within the 3 percent seller concession amount, but not always, so be sure to contact me as you explore your options.
The last of the FHA changes to directly affect homebuyers concerns credit scores. If your credit score is below 580 at the time of qualifying, you are now required to put down at least 10 percent of your loan amount. If your credit score is 580 or higher, you will still be allowed to put down as little as 3.5 percent.
Give us a call today or visit our website www.LeeAnnMiller.com
to check out the current loan rates.
How Mortgage Interest Rates Affect Your Payment
One positive outcome of a slow economy has been historically low interest rates. But as the economy begins to improve, industry experts predict that interest rates will creep up, perhaps even reaching 6 percent by the end of 2010.
While prices are likely to remain low, consider what even a small increase in interest rate can do to your monthly payment. On a $200,000 loan, an increase from 5 percent to 6 percent would result in $125 more per month, or $1,500 annually.
Contact us to get the current rates for your new loan or refinance.