Jan
29
Austin Mortgage Rates
Posted by alexb under Uncategorized
Austin mortgage planner John Schutze gives his weekly market update:
“Mortgage rates are unchanged as we end the week.
Rates started to inch up this morning after the 4th quarter 2009 preliminary GDP (Gross Domestic Product) showed that the economy expanded 5.7%. This is the highest gain since 2003 and a nice improvement over the 3rd quarter number which was 2.2%. The stock market rallied early but is now on a downturn which is helping mortgage rates improve as the day progresses. In general good news about the economy pushes rates higher however a closer look at the 5.7% increase indicates that most of the growth was due to companies replenishing inventories from earlier in the year when they were saving cash, not necessarily new economic growth. On the inflationary front, it seems that Ben Bernanke™s confirmation for a 2nd term is building confidence with investors that he will be a good Fed Chairman to fight inflation that seems inevitable in the coming months/years. Again, good news for mortgage rates in the short term.
Current rates:
30 Year Fixed: 4.875 %
15 Year Fixed: 4.375 %
FHA 30 Year: 5.0 %
VA 30 Year: 5.0 %
5 Yr ARM: 3.75 %
Jumbo 30 Year Fixed: 5.75 %
Jumbo 3 Yr ARM: 4.0 %
30 Year Home Equity: 5.0 %
The above rates are based on a $120,000 Loan Amount with a 1% Origination Fee and 720 credit score (660 score for FHA and VA loans). Some programs require slight adjustments for smaller loan amount
John finds buyers the right loan for their Austin home purchase. Check out his Austin mortgage blog.
Garreth Wilcock is a Realtor ® in Central Austin. You can search Austin homes for sale at his website.
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Jan
22
Austin Mortgage Rates
Posted by alexb under Uncategorized
Austin mortgage planner John Schutze gives his weekly market update. The FHA changes could make for an interesting time after April. I can certainly understand why the FHA is low on funds due ot national foreclosure rates rising, and this would be a great motivator to tighten their lending and increase the cost.
“Mortgage rates are down .125% this week.While the economic data released this week had little impact, mortgage rates were heavily influenced by two big stories. One was an announcement that China will take steps to slow its economic growth and the other was President Obama’s proposed new restrictions on the activities of financial institutions. Both measures are expected to lead to slower economic growth in the US, which hurt the stock market but helped mortgage bonds. As a result, mortgage rates ended a little lower.
FHA CHANGES: To build capital and reduce risk, the FHA announced that it will raise insurance rates and tighten credit score requirements. The major changes include increasing upfront premiums from 1.75% to 2.25%, reducing the maximum seller contribution from 6% to 3%, and increasing the level of FICO scores from 500 to 580 below which a down payment of 10% is required. This isn™t a big change because most lenders already have a minimum credit score of 620. At this point, the expected timing of the upfront premium increase will be in the spring, and the other changes will take place over the summer.
Current rates:
30 Year Fixed: 4.875 %
15 Year Fixed: 4.25 %
FHA 30 Year: 4.875 %
VA 30 Year: 5.0 %
5 Yr ARM: 3.875 %
Jumbo 30 Year Fixed: 5.75 %
Jumbo 3 Yr ARM: 4.125 %
30 Year Home Equity: 5.0 %The above rates are based on a $120,000 Loan Amount with a 1% Origination Fee and 720 credit score (660 score for FHA and VA loans). Some programs require slight adjustments for smaller loan amount
John finds buyers the right loan for their Austin home purchase. Check out his Austin mortgage blog.
Garreth Wilcock is a Realtor ® in Central Austin. You can search Austin homes for sale at his website.
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Jan
15
Austin Mortgage Rates
Posted by alexb under Uncategorized
Austin mortgage planner John Schutze gives his weekly market update:
“Mortgage rates are unchanged this week.While mortgage rates climbed in December, they have decreased during the first two weeks of January. A combination of factors was favorable for mortgage markets this week. Low inflation, weaker than expected economic growth data, and strong demand for the Treasury auctions all helped mortgage rates move a little lower.
One primary long-term concern for mortgage investors is that the enormous level of stimulus intended to boost the economy will lead to higher inflation. Inflation erodes the value of fixed income investments, so future inflation expectations are a major determinant of bond values, including mortgage-backed securities (MBS). Inflation has not been a factor in the short-term, however, as virtually all of the data in recent months has shown it to be low. This week, the Consumer Price Index (CPI), the most widely watched inflation indicator, showed that core inflation rose only 1.8% from one year ago. The Fed’s comfort zone is for core inflation to rise at a 1.0% to 2.0% annual rate, and Fed forecasts are for low core inflation this year. Mortgage lenders will be watching these levels closely, and any surprises down the road could push mortgage rates higher. We do still expect the trend to be higher as we move further into 2010.
Current rates:
30 Year Fixed: 5.0 %
15 Year Fixed: 4.375 %
FHA 30 Year: 5.0 %
VA 30 Year: 5.125 %
5 Yr ARM: 3.875 %
Jumbo 30 Year Fixed: 5.875 %
Jumbo 3 Yr ARM: 4.25 %
30 Year Home Equity: 5.0 %The above rates are based on a $120,000 Loan Amount with a 1% Origination Fee and 720 credit score (660 score for FHA and VA loans). Some programs require slight adjustments for smaller loan amount
John finds buyers the right loan for their Austin home purchase. Check out his Austin mortgage blog.
Garreth Wilcock is a Realtor ® in Central Austin. You can search Central Austin homes for sale at his website.
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Jan
8
Do I have to sell my home to qualify for the $6500 tax credit?
Posted by garreth under Uncategorized
The federal tax credit was expanded to include move-up buyers who buy a new home in the first part of 2010. What is a move-up buyer, and do you need to sell your current home to qualify for the program? What are the implications of selling later in the year? If you want to go to the source, you can check out H.R.3548.
What is a move-up buyer? In this instance, it’s someone buying another home who is a long-time resident of their current principal primary residence – having lived there for five consecutive years of the preceeding eight. The move-up buyer in this case doesn’t have to buy a more expensive home – it can cost more, less or the same (as long as it’s below the $800,000 program limit).
When do I have to buy my new home to qualify? You must be in a binding sales contract by April 30th 2010, and the home must be purchased by the end of June 2010.
What do I need to be careful of as April 30th approaches? You have to watch your negotiating position as you approach the deadline as a buyer. If you have an inspection contingency which goes over the April 30th deadline, your negotiating position may be weakened on repair items for example. The seller may know that this is your chance of getting $8,000 or $6,500 as a tax credit if you go ahead with the sale, and may be less willing to agree to repairs.
Do I need to sell my current home by April 30th to qualify as a move-up buyer? The short answer is No. (check out the IRS FAQ) You just have to transfer principal primary residence (where you live) to the new home. Whether or not you want to own multiple homes will depend on your finances.
Another factor which plays into the decision on whether to sell before buying is your take on the market if selling your former home. If you think that the removal of the tax incentive will reduce buyer demand, you may want to consider marketing your former home in the early part of 2010 to take advantage of stimulated buyers.
Garreth Wilcock is a full-service real estate agent who offers a listing discount for move-up buyers. You can search available homes in Austin at his website.
