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Philly Mortgage Rates Fall for Eighth Straight Week

June 13, 2011 at 3:34 pm · Filed under First Time Home Buyers, For Home Buyers, Mortgage

Fixed mortgage rates fell for the eighth straight week in the widely watched Freddie Mac survey of what lenders are offering to well-qualified borrowers.

Philadelphia Mortgage Rates week of June 13th:

30 Year Fixed: 4.75% with 0 pts. (45 day lock)

30 Year Fixed Jumbo: 5.00% blended rate (call for details)

15 Year Fixed: 3.875 % with 0 pts. (45 day lock)

FHA 30 Year Fixed: 4.75 % with 0 pts. (45 day lock)

There is a significant amount of economic data scheduled for release this week including two large inflation reports (Producer Price Index and Consumer Price Index) as well as reports on housing starts, jobless claims, manufacturing and retail sales. If U.S. economic data continues to deteriorate and the global economies continue to cool, mortgage rates may continue to their downward trend for the foreseeable future.

Now’s the time to take advantage of the combination of low rates and affordable housing in Philadelphia.

Conventional pricing is with middle credit score >740. FHA minimum credit score is 640. *Income and Asset verification required and must meet DTI guidelines. *This is not a commitment to lend and other conditions may apply.

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Philly Mortgage Rate Update: March 14th 2011

March 14, 2011 at 5:26 pm · Filed under First Time Home Buyers, For Home Buyers, Mortgage

Mortgage rates were lower last week as surging oil prices and tension in the Middle East continue to drive investors to the perceived safety of the Treasury market. High oil costs affect more than just the price at the pump for consumers. Rising fuel prices means higher transportation and shipping costs for everything from food to manufactured products to service-related businesses. Those increases are usually passed on to businesses and consumers, threatening economic growth and corporate earnings. I wouldn’t expect any significant changes in rates until there is some resolution overseas.

Today’s Mortgage Rates:

30 Year Fixed: 4.875% with 0 pts. (45 day lock)

30 Year Fixed: (KW Stimulus): 4.50% with 0 pts. (45 day lock)
(Seller must participate in KW Stimulus Plan…call for details!!)

30 Year Fixed Jumbo: 5.25% blended rate (call for details)

15 Year Fixed: 4.25 % with 0 pts. (45 day lock)

FHA 30 Year Fixed: 5.00 % with 0 pts. (45 day lock)

The bottom line is that even if housing were to drop a little further in some areas, the affordability coming from today’s rates serves as a backstop against any moderate price reduction. Remember, housing will likely be in a much better position in the second half of the year and at that time rates could be a bit higher. Now’s the time to take advantage of the combination of low rates and affordable housing in Philadelphia.

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FHA Mortgages: New Rules Go Into Effect This Month

November 29, 2010 at 10:39 am · Filed under First Time Home Buyers, For Home Buyers, Mortgage

The FHA is becoming more and more important as a source of financing for Americans looking to purchase or refinance a home. The FHA insures mortgages against default and funds this insurance by charging borrowers a variety of mortgage insurance fees.

New rules that went into effect this month adjust the two types of mortgage insurance paid by consumers for loans insured by the FHA.

**The annual insurance premium (MMI) is paid monthly by the borrower. It is now 0.85% to 0.9% of the loan balance, depending on the down payment or equity owned. The previous amount was 0.5% to 0.55%.

**The one-time upfront insurance premium (MIP) that borrowers must pay has been changed to 1% of the loan balance from 2.25%.

The upfront premium is paid in a lump sum at closing or added to the loan balance, unlike the monthly premium, which is paid over the life of the loan in addition to the interest and principal.

Good News, Bad News: Under the new rules borrowers will save money at closing. But those monthly mortgage payments will be a little higher.

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posted by janice SEARCH the Philadelphia MLS. No Registration Required!

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Center City Philadelphia: It’s Smart to Live Downtown

November 24, 2010 at 12:24 pm · Filed under Condos, First Time Home Buyers, For Home Buyers, Philadelphia Market Conditions

A recent report by the Center City District looks at the economic resilience of Center City amid the recession and shows that it is smart to live downtown. The report shows home values in Center City are down a fraction of what other cities are experiencing – and Center City real estate prices have held up better than citywide.

**Center City housing markets have performed better in this recession than many other places because Philadelphia’s economy and the high skilled industries that define downtown have fared better.

**Philadelphia is built on an intimate-scale street grid, it has a broad range of amenities and the ability to walk, take transit or bike to work have all been factors in attracting and retaining residents who value convenience, cost-effectiveness and a sustainable lifestyle.

**For the first time in 50 years, Philadelphia’s population has begun to increase, led by growth in Center City and University City.

The success of Center City in turn creates opportunity in every city neighborhood.

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posted by janice SEARCH the Philadelphia MLS. No Registration Required!

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When Interest Rates Rise It Will Impact Affortability

November 16, 2010 at 4:03 pm · Filed under First Time Home Buyers, For Home Buyers, Mortgage

Philadelphia housing remains at near-record affordability levels, and prospective home buyers stand to benefit from the lowest mortgage rates in decades, as well as advantageous home prices. Housing is approximately 60% more affordable now than during the height of the market.
Mortgage rates once again set new record lows in early October to 4.19% and remained below 4.3% throughout the month. These historically low rates contributed to real savings for buyers. Furthermore, the longer the buyer owns the home, the greater the savings they will realize. As economic activity gains momentum, rates will rise to keep inflation at an acceptable level.
BTW the historical 30 year average for a 30 year fixed mortgage is 8.9%

John Paulson, a multimillionaire hedge fund manager, declared recently in Forbes that today’s record-low interest rates made this the best time to buy homes in fifty years. “If you don’t own a home, buy one,” Paulson said. “If you own one home, buy another one, and if you own two homes, buy a third and lend your relatives the money to buy a home.” Paulson it should be noted was among the few to accurately predict the subprime collapse.

Buyers who choose to wait until prices come down more are gambling that interest rates will hold steady or drop. The truth is even a 10 percent drop in home prices is nullified by a 1 percent increase in interest rates. The figure below illustrates how this works for a $250,000 home purchase and the relative likelihood of each scenario.

**A 1% increase in mortgage rates is ten times more likely to happen than a 10% drop in home prices.

**A 1% rate increase more than offsets a 10% reduction in home prices.

**When interest rates fall by 1%, the total interest paid is almost three times more than the interest savings from a 10% drop in home prices.

**The probability of both happening at the same time is ridiculously small, and homeowners would still pay 15 % more in interest over the life of the loan.

For those who can afford to buy, trade up, or invest, our current market presents a lifetime opportunity.

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posted by janice SEARCH the Philadelphia MLS. No Registration Required!