Mortgage & Finance
Mortgage rates at record lows
August 20th, 2010 categories: Buyer Strategies, Mortgage & Finance
Chantilly, Centreville, and Northern Virginia area home buyers had a pretty good week as far as mortgage interest rates are concerned.
This past week saw another new low for conforming rates. We are talking some of the lowest levels in mortgage rate history.
From Freddie Mac data we are seeing the 30-year fixed rate averaging 4.42% nationally with points cost of 0.7 points. Each point is equal to 1% of the loan amount.
Keep in mind that mortgage rates and mortgage fees generally move in the opposite direction. So you have to determine how the loan is structured and what your personal needs are to make sure you get something that fits your financing needs. Obviously, that is where a high quality loan professional comes in. Make sure you are working with someone who will puts your needs first. You have lots of options and variations in making mortgage financing choices.
Bottom line: periods of difficulty are accompanied by opportunity. If a home buy or a refinancing is right for you, remember that you are literally in a period of the lowest mortgage rates in history.
By the way, if you are a home seller in the Northern Virginia area, and are wondering what homes in your neighborhood have actually sold for, take advantage of MARKET SNAPSHOT.
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Chantilly, Centreville and Other Home Buyers: Be aware of these FHA changes
August 17th, 2010 categories: Buyer Strategies, Mortgage & Finance
Chantilly and Centreville home buyers will want to be aware that FHA is doing another round of modification on its mortgage insurance requirements.
The changes will impact the initial as well as annual premiums, starting with cases on October 4.
With a 30-year fixed-rate FHA mortgage, and at least 5 percent equity, the numbers look like this:
- Upfront MIP drops to 1.000% of the amount borrowed from 2.250%
- Annual MIP increases to 0.850% of the amount borrowed from 0.500%
For Chantilly and Centreville home buyers, as well as others using the program, this MIP change lowers the upfront cost of an FHA-insured mortgage, but increases the long-term costs.
FHA believes the change will help them by about 300 million in annual premiums. This should at least help to bring more financial stability to this much used program.
At the current rate, the FHA is on pace to back 1.7 million loans this year.
You will have to make the judgment as to whether getting your FHA case number before October 4 is best for you.
If you’re unsure of how the new FHA mortgage premiums will impact your mortgage, be sure to call or email your loan officer for help, or contact us if you need a few referrals for reliable professionals we have worked with.
By the way, initially the FHA said the implementation would be September 7. It was later amended to October 4, 2010.
If you have you sites set on taking advantage of the opportunities in the current market, either “normal” properties or those that are Short Sales or foreclosures, please know we are here to help you navigate your way to a terrific deal. Let us know how we can help!
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Mortgage Rate Shopping: Reactions to Fed’s June Meeting
July 18th, 2010 categories: Buyer Strategies, Mortgage & Finance, Seller Strategies
Mortgage rates hit all time lows this week, at least according to Freddie Mac.
And they may be staying low for awhile, but then again who can predict. A good run of economic news could send them creeping up.
Since the Fed released its June 2010 meeting highlights, mortgage rates have been dipping, owing to the tone and language of the report.
The Fed’s report is page upon page of stats, and other somewhat dense descriptions of the U.S. economy, along with discussion of the give and take of opinions among the Fed members.
Some highlights from this report include:
- An expectation of below normal growth through 2012
- A less positive picture on employment
- Credit conditions easing only very slowly
This is not great news overall, but it may bode well for mortgage rates.
If you have a re-fi or a home purchase on the horizon, consider getting that mortgage rate locked in now. Forget the stress of trying to second guess what is next.
And of course, if you are considering a move to the Northern Virginia area or a home sale or purchase in Northern Virginia, I invite you to take a quick minute and watch our video on how we serve our clients. It is an honest view on how we serve home buyers and sellers. Click on “Our Story: In the Voice of Our Clients.”
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Do you KNOW if this is a good time to refinance your mortgage?
July 1st, 2010 categories: Mortgage & Finance
This 3-minute video from NBC’s The Today Show from last month is still worth a quick look if you are thinking about a refi.
If you are uncertain as to whether a refinancing of your mortgage is a good idea, that is probably a sign that you need to check it out.
You should know the answer to that question, otherwise you may be throwing money away each month.
As always, let me know if you need a few mortgage contact referrals. I routinely provide buyers and sellers with several referrals that I have found to be reputable, quality mortgage professionals.
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Appraisals of Home Value and Your Mortgage Application: Knowing What to Expect
May 19th, 2010 categories: Mortgage & Finance, PODCASTS
EPISODE 36 – REAL ESTATE IN CHANTILLY
If you are looking for a home in the Chantilly or Northern Virginia area, one of the big “moving parts” of your mortgage loan process as a buyer, is the appraisal of the home’s current value.
The appraisal has the potential to create complications for your loan as a mortgage applicant, and the sale of your home if you are a home seller.
What should you be aware of before you jump into the mortgage application process? What potential challenges will you face and how are they resolved? What does a low appraisal do to your mortgage loan process?
These and other issues are discussed by Robert A. Martinson of Bank of America, in this episode. If you have a mortgage application in your future, or the sale of your own home, give a listen to this brief but informative description of appraisals.
Also remember that Kathy O’Neal is always available to help you with real estate issues. If you are relocating to Northern Virginia request our Relocation Guide and take advantage of the Property Search, as well as Area Living features on our website.
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FHA and Conventional Mortgage Loans: Good Information Before You Start the Process
April 20th, 2010 categories: Mortgage & Finance, PODCASTS
EPISODE 35 – REAL ESTATE IN CHANTILLY
If you are a Chantilly or Northern Virginia area home buyer, and you are looking for the best mortgage loan program for your needs, this discussion of both FHA and Conventional loan program will give you added insight on the realities of the current market.
Robert A. Martinson, Loan Officer and Sales Manager with Bank of America, gives us a candid description of the basics of these two major categories of loan options, along with insights on what you can expect as you enter the mortgage loan research and application process.
He will talk about advantages of FHA loans, while addressing many of the common questions loan applicants have about this very popular federal program. In addition, he offers current information on Conventional loan programs.
As always, if you are in the search for an experienced and integrity-based loan professional, don’t hesitate to contact Kathy for several referrals.
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Freshen-up that Pre-Approval Letter
April 16th, 2010 categories: Buyer Strategies, Mortgage & Finance
Chantilly area home buyers, and those across Northern Virginia and elsewhere, are down to the wire as the federal home buyer tax credit nears its April 30 conclusion.
If you are trying to get that contract signed in time, and if your pre-qualification and/or pre-approval letter is more than 8 weeks old, get your lender to “re-pre-approve” you. Guidelines for mortgages have been dynamic so your original letter may not be workable at this time.
Long story short: over the past 6 or so months lenders have generally reduced risk tolerance, especially regarding things like maximum debt-to-income ratios, minimum allowable credit scores, and calculation of “assets in reserve”
As an example, it you are a condominiums or co-op buyer, property itself is coming under tougher scrutiny.
The mortgage application is now more of a complete package, to include more than just a qualifying income.
This “re pre-approval” could help you on several levels. It can uncover potential problems that could hurt more if discovered later rather than sooner.
Talk to your real estate and mortgage professional about this, and get their best counsel. And if you are starting fresh, we are always here for you. Let us know how we can help!
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Adjustable Rate and Interest Only Mortgages: The Basics
April 5th, 2010 categories: Mortgage & Finance, PODCASTS
EPISODE 34 – REAL ESTATE IN CHANTILLY
If you are a Chantilly or Northern Virginia area home buyer, and you are shopping for the right mortgage, you need to know the basics about adjustable rate and interest only mortgages.
Getting stuck with the wrong mortgage program can be a mistake that will take years to recover from. Basic knowledge about the type of programs available is critical. And these two types of loans have contributed a great deal to the mortgage woes that we are currently working through. Robert A, Martinson points out that these loan options can have their place, but it is very important that you don’t go in this direction unless you have a very specific set of needs and circumstances, and you understand the risks associated with these loans.
By the way, if you are shopping for a mortgage loan program, feel free to contact Kathy for several referrals.
Download this episode (right click and save)
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National Home Prices Lower Broadly, But One Size Does Not Fit All
April 2nd, 2010 categories: Buyer Strategies, Mortgage & Finance, Seller Strategies
If you are looking at home value stats – and I can understand if you would rather not think much about it given all that we have been through in the housing market in the last few years – but if you take a look now and then, you will note that home values fell again in January, according to the Federal Home Finance Agency’s Home Price Index. They reported values were down 0.6 percent, on average.
Here is something a little more specific:
- Values in the Mountain states rose 2.0%
- Values in the Pacific states were flat
- Values in the East North Central states fell 1.8%
This does not tell us much about local communities like Chantilly, South Riding, Centreville or the other communities here in the Western Fairfax and Loudoun area. But I do like to keep an eye on national stats, so we share them from time to time here at realestateinchantilly.com and hope you find them of interest. You can get actual sold prices in any local community by using Market Snapshot and that will give you about as localized information as you can get.
Of course, use any of our Property Search tools to see what is on the market in your area of interest as well.
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How to best use your tax refund
March 29th, 2010 categories: Home Life, Mortgage & Finance
Chantilly area home buyers and home sellers, like everyone else, see the upcoming deadline of April 15 for taxes. If you’d like a few ideas on how to make the most of any tax refund, this 4-minute video from NBC’s The Today Show is worth checking out It has some great ideas on how to use refunds to pay down credit card debt, or how to fund retirement plans. Also good to know is how wage earners can take advantage of their “Making Work Pay” tax credit
There are lots of good reasons to get those taxes done now. Why not assume that April 7 is the deadline and avoid the stress of waiting till the last minute.
And, if you have plans to possibly use that refund to buy your first or next home, take advantage of the many buyer resources at our other website and if you are a first-time home buyer, or have not been in the market for awhile, definitely watch our How to Buy a Home video (scroll down to “Buying Your First or Next Home”). You will be much better equipped to go through the process successfully, if you watch this video.
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