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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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Mortgage Help Center Opens in Philadelphia

May 6, 2011 at 1:37 pm · Filed under Mortgage, YO Philly

Fannie Mae, the nationwide mortgage company, opened Philadelphia Mortgage Help Center 2 days ago to provide free education and counseling to Philadelphia residents with foreclosure issues. The Center was developed in partnership with Consumer Credit Counseling Service of Delaware Valley, local community and elected officials, and area mortgage servicers.

The center is located at 399 Franklin Mills Circle in the Northeast and is the latest of nine to open across the country. The services are available only for homeowners with a mortgage owned by Fannie Mae and require an appointment, which can be made by calling 866-442-8570.

Services available at the Center include one-on-one consultations with experienced housing counselors to review mortgage loans and financing options, explain the range of options available, and help borrowers apply for loan workouts and other alternatives to foreclosure. Services are available in both English and Spanish.

“Philadelphia’s nationally recognized Mortgage Foreclosure Prevention Program has already saved more than 3,000 homeowners from foreclosure,” says Mayor Michael A. Nutter. “We welcome Fannie Mae to our region and are pleased to have another partner in the fight to keep Philadelphia families in their homes.”

Determine if Fannie Mae owns your loan
or you can call 800-7FANNIE

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What is the 90 Day Mortagage Flip Rule?

March 31, 2011 at 2:08 pm · Filed under For Home Buyers, For Home Sellers, Mortgage

With the Philadelphia spring housing market upon us I thought it would be a good time to review the guidelines for getting a mortgage on a flipped property. Essentially a flip is when an investor buys a property and then sells it at a profit within a short time frame. Flips tend to make lenders cautious because these types of transactions historically have had higher rates of default – more fraud involved, inflated property values, etc. These transactions can be difficult to close but if you know the rules it gets easier.
Conventional mortgage flip rules are relatively straightforward – a resale on a property when the seller is owner of record 90 days or less the loan is a decline. A resale of a property when the seller is owner of record 90-180 days is acceptable with 2 full appraisals and will typically be very closely reviewed, especially if the loan requires mortgage insurance.

FHA loans also have a prohibition on buying properties that were bought by the seller in the past 90 days. But there is a waiver in effect through December 31st 2011 that will allow flips to close. There are some conditions – the transaction has to be arms length (meaning not between friends or family) and if the seller is making more than 20 percent of their original purchase price, there are more complicated conditions that need to be met. Read the entire notice: Temporary Exemption from Compliance with FHA’s Regulation of Property Flipping (pdf)

While FHA has waived the rule for one year not all lenders will also waive their flip rules which are often applied to all mortgages. One more reason to use an experienced Realtor who knows the ins-and-outs and who has a good working relationship experienced mortgage brokers. It could mean the difference between buying the home you want or being denied a mortgage.

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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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