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) 

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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) 

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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!

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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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!

Charming Philadelphia (Pennsport) Home

324 Gerritt St, Philadelphia PA 19147

2 bedrooms, 1 bathroom,
MLS# 5778053   $159,000 $149,000

For more information on this Pennsport home, please call The Bovee-Perlow Group
267.238.5779

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

Even though the home buyer tax credit expired on April 30, 2010 and won’t be renewed, there may never be a better time to buy a home in Philadelphia than today. There are many outstanding opportunities for Philadelphia home buyers, but they may not be around forever.

Mortgage interest rates are hovering at near-record lows and homes in the Philly market have become more affordable. Prices in most neighborhoods have moderated from the highs of the housing boom and are now competitive. Between the great interest rates and competitive prices buyers can get a home that was out of reach just a few years ago.

If you are thinking about buying a home don’t count on interest rates or prices staying at current levels, however. Mortgage rates are sensitive to market conditions and even a slight increase can push monthly payments beyond your budget and comfort range. Most economists expect that home prices and interest rates will begin to increase by 2011.

Although we would love to help you find your next home, we don’t believe that buying a home is right for everyone. It’s a big commitment.  You should have a clear idea of what you’re getting into before you commit to 30 years of payments. Want to learn more about the Philly housing market? Give us a call.

Technorati: philadelphia market conditions, philly home values, philadelphia mortgage rates, philly home buying

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

If you have good credit, a steady source of income and have been thinking about purchasing real estate then you owe it to yourself to get out there and start looking, unless of course you can afford to wait another 30 years or so for mortgage rates to be this low again.

 Todays Mortgage Rates:

30 Yr Fixed – 4.35% (.5 point) / 4.5% (0 points)

15 Yr Fixed – 3.75% (1 points) / 4% (0 points)

5 yr ARM – 3.25% (1 point) / 3.5% (0 points)

7 yr ARM – 3.5% (1 point) / 3.75% (0 points)

FHA 30 Yr Fixed – 4.25% (1  point) / 4.5% (0 points)

FHA 5Yr ARM – 3.75% (1 point) / 3.75% (0 points)

Investment – 4.75% (1 point) / 4.95% (0 points) 25% down payment required

*Rates are based on 80% loan to value unless noted and 720+ credit score (with the exception of FHA) *Income and Asset verification required and must meet DTI guidelines *This is not a commitment to lend and other conditions may apply
Technorati: philly mortgage, mortgage market, carina marchese, center city mortgage company

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Brought to you by our favorite mortgage broker:

Carina Marchese
Center City Mortgage
267.238.5785

email Carina for today’s rate

 This is the perfect loan for the Philadelphia home buyer who wants to buy a fixer-upper and turn it into their dream home.  

The FHA 203(k) Rehabilitation Loan allows a homeowner to buy a home, in any condition, and finance the repairs / improvements to the property. These loans can be done with either a purchase of a new home or a refinance of the borrower’s existing home.

There are two types of FHA 203(k) loans:

Streamline 203(k) -  Repairs and improvements that do not exceed $35,000.

Full 203 (k) -  Anything exceeding $35,000 in repairs and improvements.

Certain repairs, regardless of their dollar value must be done under a full 203 (k) – for instance any structural repairs/remodeling.

The minimum amount of the loan is $5,000 and there is no maximum amount.

What repairs/remodeling items are allowed?

Most improvements are eligible provided they add value and are permanently affixed to the foundation.

Improvements to detached structures and luxury items are not allowed.

On a Streamline 203(k) – major remodeling and room additions are not eligible.

What is the maximum I can borrow?

On a purchase transaction, the amount is 96.5% of the loan-to-value.

On a refinance transaction, the amount is 97.5% of the loan-to-value.

In no circumstance, can the loan amount be greater than the maximum allowable FHA mortgage amount for the geographic area.

How is loan-to-value determined?

The loan-to-value is based on the lesser of:

The sales price or “as os” appraised value plus borrower paid repairs OR

110% of the “as completed” appraised value.

On a full 203(k), you can even finance up to 6 months of mortgage payments while the home is being renovated as long as the home is determined to be uninhabitable.

Rates are generally about .25% higher, these loans take longer to close and of course there is more paperwork involved. Not all lenders are able to do these loans. In fact many loan officers will not do these loans as they are quite specialized and involve more time and attention.

Think this loan might be for you? Give us a call and we will be glad to get you started.

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

•  Sustainable Design

•  All New Rebuilt Brick Front

•  90% Efficient HVAC System

•  Low-E Windows

•  100% Recycled Insulation – Walls and Ceilings

•  Eco Friendly Bamboo Floors

•  Energy Star Appliances

Approximately 1800 square feet which includes a finished basement. Open layout. Kitchen has stainless steel applicances and granite counter tops. 3 bedroom 2.5 bath, master suite with walk-in closet.  52” plasma TV installed with zone controlled all-house audio system.

Well thought out and executed renovation. Included for your piece of mind is a builders’ warranty.

$239,000

A Port Fishington jewel and definitely worth a look. Completion date is 3-4 weeks…stay tuned for more pictures as project nears completion.

HAVE HOT NEW FISHTOWN LISTINGS DELIVERED FRESH TO YOUR INBOX

Technorati: fishtown, port fishington, new renovation, philly home buyers, first time home buyers

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