February 18, 2011
Current Rates 2011 - What does it all mean?
The bottom line, what it means is: it will cost more for you to buy a home as we continue forward. Call me and let’s at least start looking!
FYI - As of April 18, 2011 FHA will institute a new Monthly PMI Calculation for all FHA numbers assigned after that date. The new calculation will increase from .9% to 1.15%. Example: for a purchase price of $200,000 the monthly mortgage insurance currently would be $143.78. For all FHA numbers assigned after 4/18 the same $200,000 purchase price will have a monthly mortgage insurance cost of $183.72. Let me know if you have any questions or concerns.
Other news: Rates are holding steady since they increased into the high 4's and low 5's. See below.
Rates for 1-17-2011
30 Year Fixed Conventional
5.125% - 0 pts
15 Year Fixed Conventional
4.375% - 0 pts
30 Year FHA
4.875% - 0 pts
v All rates based on purchase financing. Call for details on refinances.
v Conventional rates are based on 30 day locks with mid credit scores > 760.
v FHA rates are based on 30 day locks with mid credit scores > 660.
v Call for more information for clients with credit scores below the scores listed above.
30 year PHFA (Penna. Housing Finance Agency)
4.375% - 30 year – NEW Construction
5.375% - 30 year - Existing Homes
v Must be First Time Home Buyer v Income and Purchase price restrictions (see PHFA Chart)
December 17, 2010
HOME BUYING/SELLING MADE EASY! January 11th 2011
Are you interested in Home Buyers Seminars? We are having one of many Real Estate Seminars for Home Buyers and Sellers of the New Year 2011! This event is being held on Tuesday, JANUARY 11th - call for reservations - (215) 654-5431! There will be food and drink and is OPEN TO BUYERS, SELLERS and INFORMATION SEEKERS! Also I can deliver the same great information one on one - let's set an appointment! Whether Buying and/or Selling, let my team take all the worries out of real estate and get you where you want to be! Call me for details!
December 15, 2010
Why is My Rate Higher?
|
|||||||||
|
November 18, 2010
The Government Will Still Help You Buy a Home
|
|||||||||||||
|
November 3, 2010
Real Estate Trends
|
|||||||||||||||||||
|
|||||||||||||||||||
Cornerstone Financial Mortgage | 910 Harvest Drive | Suite 100 | Blue Bell | PA | 19422
|
October 7, 2010
10 Reasons to Buy a Home by Brett Arends
| Enough with the doom and gloom about homeownership. Sure, maybe there's more pain to come in the housing market. But when Time magazine starts running covers that declare "Owning a home may no longer make economic sense," it's time to say: Enough is enough. After all, at the peak of the bubble five years ago, Time had a different take. "Home Sweet Home," declared its cover then, as it celebrated the boom and asked: "Will your house make you rich?" But it's not enough just to be contrarian. So here are 10 reasons why it's good to buy a home. 1. You can get a good deal. This is a buyer's market. Most of the other buyers have now vanished, as the tax credits on purchases have just expired. We're four to five years into the biggest housing bust in modern history. And prices have come down a long way- about 30% from their peak, according to Standard & Poor's Case-Shiller Index. Yes, it's mixed across the country. Will prices fall further? Sure, they could. You'll never catch the bottom. It doesn't really matter so much in the long haul. 2. Mortgages are cheap. You can get a 30-year loan for around 4.3%. What's not to like? These are the lowest rates on record. As recently as two years ago they were about 6.3%. That drop slashes your monthly repayment by a fifth. If inflation picks up, you won't see these rates again in your lifetime. And if we get deflation, and rates fall further, you can refi. 3. You'll save on taxes. You can deduct the mortgage interest from your income taxes. You can deduct your real estate taxes. And you'll get a tax break on capital gains when you sell. Sure, you'll need to do your math. You'll only get the income tax break if you itemize your deductions. The breaks are more valuable the more you earn, and the bigger your mortgage. But many people will find that these tax breaks mean owning costs them less than renting. 4. It'll be yours. You can have the kitchen and bathrooms you want. You can move the walls or build an extension. For renters, these types of changes are often impossible. You'll feel better about your own place if you own it than if you rent. Many years ago, when I was working for a political campaign in England, I toured a working-class northern town. Mrs. Thatcher had just begun selling off public housing to the tenants. "You can tell the ones that have been bought," said my local guide. "They've painted the front door. It was a small sign that said something big. 5. You'll get a better home. In many parts of the country it can be really hard to find a good rental. All the best places are sold as condos. Once again, this is a case by case issue. Generally speaking, if you want the best home in the best neighborhood, you're better off buying. 6. It offers some inflation protection. No, it's not perfect. But studies by Professor Karl Case (of Case-Shiller), and others, suggest that over the longterm housing has tended to beat inflation by a couple of percentage points a year. That's valuable inflation insurance, especially if you're young and raising a family and thinking about the next 30 or 40 years. 7. It's risk capital. No, your home isn't the stock market and you shouldn't view it as the way to get rich. But if the economy does surprise us all and start booming, sooner or later real estate will head up again, too. One lesson from the last few years is that stocks are incredibly hard for most people to own in large quantities - for practical as well as psychological reasons. Equity in a home is another way of linking part of your portfolio to the long-term growth of the economy and still managing to sleep at night. 8. It's forced savings. If you can rent an apartment for $2,000 a month instead of buying one for $2,400 a month, renting may make sense. But will you save that $400 for your future? A lot of people won't. Once again, you have to do your math, but the part of your mortgage payment that goes to principal repayment isn't a cost. You're just paying yourself by building equity. 9. There is a lot to choose from. There is a glut of homes in most of the country. The National Association of Realtors puts the current inventory at around 4 million homes. That's below last year's peak, but well above typical levels, and enough for about a year's worth of sales. That means great choice, as well as great prices. 10. Sooner or later, the market will clear. Demand and supply will meet. The population is forecast to grow by more than 100 million people over the next 40 years. That means maybe 40 million new households looking for homes. Meanwhile, this housing glut will work itself out. Many of the homes will be bought. But many more will simply be destroyed - either deliberately, or by inaction. Source: Wall Street Journal |
| About Cornerstone Financial Mortgage
Cornerstone employs a team of experienced professionals who are committed to providing the highest level of service while fulfilling the varied needs of our customers. We build our business on satisfied customers - home buyers, homeowners, realtors and builders. Cornerstone strives to create value for all our partners - value for our customers, investors, shareholders, employees and the communities where we do business. Eric Baitinger
Sr. Mortgage Consultant 215.654.6085 Email Me Visit My Website |
October 5, 2010
FHA Changes the Rules and Costs
|
|||||
|
September 8, 2010
The Wind is Shifting...
On August 12, 2010, the President signed a law which provided HUD with flexibility regarding the mortgage insurance programs. Effective October 4, 2010 the upfront premium will decrease from 2.25% to 1.00%. Conversly, the annual premium (monthly mortgage insurance as you know it) will increase from .55% to .90% for loans with an LTV greater than 95%. I have provided an example below of the effect on a $225,000 purchase price with 3.5% down at 4.5%.
Current FHA Guidelines
MIP = $4885.00
Monthly PMI = $98.79
Monthly PI&PMI payment = $1,223.68
New FHA Guidelines
MIP = $2171.00
Monthly PMI = $161.65
Monthly PI&PMI payment = $1,272.79
Difference in total payment = $49.11 more under the new rules.
Keep in mind, these changes were made to keep FHA solvent. By enacting these new changes they will continue to operate with no interruptions and no funding problems. Let me know if you have any questions or concerns.
Courtesy of: Eric Baitinger Cornerstone Financial Mortgage 215-654-6085
September 8, 2010
How About Some Ice Cream?
| They keep talking about the "double dip" in the news and just in case you hear that expression, a double dip is not what you do to an ice cream cone! Well, these days, it is always good to introduce some humor when the news is not always great. However, there is some really good news right now. Rates are the lowest they have been all year. That is really saying something, because rates have been very low all year. As a matter of fact, rates on home loans are the lowest they have been in our generation. That is pretty low. Why is that good news? If someone is thinking about purchasing a home or a car or refinancing, it is a great time to move now. Prices are low and rates are ridiculously low, thus the time is right. We need more people to buy homes and cars over the next few months so we can avoid a double dip recession. And that would be a very good thing. What is the bad news? Rates as low as these are indicative of a slow economy. We just need to see one number from this week to demonstrate how slow things are: first-time claims for unemployment insurance went over the 500,000 mark in the past week. While still lower than the heights of the recession, it was the first time we had crossed the 500,000 barrier since late last year. Once people step up their purchases of homes and cars, this will prompt companies to hire more employees. In turn, this will make consumers more confident to purchase more homes and cars. Then the cycle of economic growth will start back up and talk of a double dip will quiet down. And when that happens, we promise rates will go up. We just can't say when. So, for those who are waiting for the economy to get better, it will cost more for you to purchase if you are behind this curve. The trend setters will just buy their ice cream now while there are enough sprinkles to double dip. |
| Save a Bundle: Shorten the Term More homeowners are refinancing into shorterterm loans, saving a bundle by taking advantage of the lowest rates in decades. Nearly a third of borrowers refinancing fixed 30-year loans in April through June picked loans with 15- or 20-year terms, according to housing finance giant Freddie Mac. It was the highest share since 2004. The trend has been driven by near-weekly drops in rates all summer. Average rates on fixed 15-year loans fell below 4% for the first time in mid-August, dropping to 3.92%, according to Freddie Mac. A year ago, the average 15-year rate was 4.68%. Meanwhile, the rates on fixed 30-year loans now averaged 4.44% in mid-August, Freddie Mac found. At today's rates, a borrower with a 30-year loan at a 6.5% interest rate and a $200,000 principal balance could save some $70,000 in interest over the life of a shorter 20-year loan. "Borrowers are looking to build equity more quickly, and they have generally been paying down their loans more quickly," says Keith Gumbinger, vice president of HSH Associates, a publisher of consumer loan information. Source: USA Today |
| Builders Buying Land Again Home builders are vying actively to buy land to buy in anticipation of a market turnaround. "There's been an absolute land rush," says Gregor Watson, a partner with McKinley Partners, a California-based real-estate fund. Builders prefer land with improvements, including sewers and streets because it allows homes to be constructed quickly. Especially attractive are suburban lots in neighborhoods that are easy commutes. Nationally, the price of finished lots are up about 20 percent from early 2009. Prices for attractive lots in Phoenix and Southern California have risen 60 percent. Nationwide, the best-located lots are fetching twice as much as they would a year ago, said Greg Vogel, CEO of Land Advisors Organization, a land brokerage firm based in Scottsdale, Arizona. Source: WSJ |
| About Cornerstone Financial Mortgage
Cornerstone employs a team of experienced professionals who are committed to providing the highest level of service while fulfilling the varied needs of our customers. We build our business on satisfied customers - home buyers, homeowners, realtors and builders. Cornerstone strives to create value for all our partners - value for our customers, investors, shareholders, employees and the communities where we do business. Eric Baitinger Sr. Mortgage Consultant 215.654.6085 office Email Me Visit My Website |
July 22, 2010
The Biggest Mistakes Home-buyers Make
|
Buying a home is the biggest purchase most people will ever make, yet many go into it blind. Here are the most common, and costly, mistakes homebuyers make.
Not knowing your credit score. If you're even toying with the idea of buying a home, you must find out exactly what your FICO score is. If you find it is less than ideal, wage a systematic campaign to raise it. Too many borrowers ignore this step and get surprised when they get interest rate quotes. Once you've pored over your credit history and corrected any errors, your next step is to pay down revolving debt balances to no more than 30% usage. That will help raise your score significantly. The lower your score, the higher your costs of borrowing. Fannie Mae and Freddie Mac, for example, charge higher up-front fees to borrowers with credit scores below 740. For a buyer with a credit score between 680 and 700, the fee comes to 1.5% of the mortgage principal. On a $200,000 mortgage, that adds up to $3,000. Someone with a 740 score pays nothing. Lower-score borrowers also get saddled with higher interest rates, about a 0.4 percentage point more for the below 700 borrower. That costs an extra $62 a month -- $744 a year -- on a $200,000, 30-year, fixed rate loan. Buying a car before a house. Anytime consumers open new credit accounts -- credit card, auto loan, etc. -- their FICO score could drop, according to Craig Watts, a spokesman for Fair Isaac, the creator of FICO scores. "Hence the admonition to not open other new accounts while your mortgage application is in process," he said. A big purchase would use up a considerable proportion of a borrower's total credit limit, which results in a drop in the score. Lenders often continue to check credit scores in the weeks before closing. "The lender will likely slam on the brakes if the applicant's credit scores have suddenly dropped below the minimum required for the requested loan rate," Watts said. Skimping on the home inspection. Buying a pig in a poke can cost buyers big bucks, just when they can least afford it. So It's vital to find all the costly flaws before you buy. Many homes on the market today are distressed properties -- foreclosures and short sales -- and that only increases the importance of good inspections, according to David Tamny, president of the American Society of Home Inspectors. "The owners usually didn't have the money to keep up these homes," he said. "There's a lot of deferred maintenance." A home inspection can find problems with the foundation, electrical, plumbing, roof, attic insulation, and heating and air conditioning. In some states, separate licensed inspectors offer mold or termite inspections. Often homebuyers, who may be strapped for cash, stint on inspections and look for the cheapest way to go. That can lead to disaster. The cost of repairs far exceeds the cost of inspection," said Tamny. No contingencies. When signing a sales contract, buyers usually have to put up 1% to 3% in "earnest money," which they don't get back if they pull out of the deal except under certain conditions spelled out in the contract. Sellers try to limit the grounds for canceling, and inexperienced buyers may sign contracts that don't include common exceptions, such as uncovering major problems during the home inspection, failing to obtain financing and failure of the house to appraise. Failure to obtain financing is common these days because lenders have become very picky; underwriting is very strict. Even if your mortgage company is still willing to finance your purchase, the house itself may be worth less than you've contracted to pay for it, and the lender will pull its approval. With residential real estate markets still slow, sellers usually accept contingency clauses, but if they resist, it may be better to rethink the deal. Losing a deposit of $2,000 to $6,000 on a $200,000 home hurts. Not budgeting for insurance. Don't underestimate insurance costs and fail to budget for them. Many homebuyers don't understand just what is -- and what is not -- covered. Standard policies pay for theft and wind, fire, lightning, hail and explosion damage. Not covered is flooding, earthquake damage or problems caused by neglect of routine maintenance, according to Jeanne Salvatore, spokeswoman for the Insurance Information Institute, an industry-sponsored educational group. "The most important thing before you buy a home is to find out what it will cost to insure it," she said. "Insurance needs to be calculated into the cost of owning a home. Unlike a mortgage you can pay off, you'll be responsible for insurance costs forever." For flood insurance, most buyers use the National Flood Insurance Program. Earthquake coverage may be available through a state authority or some private companies. Depending on location, flood insurance can run into a lot of money. The cost of $250,000 worth of government flood coverage on the building and $100,000 of its contents can go as high as $5,714 in high-risk, coastal areas. Source: CNN/Money.com |
| About Cornerstone Financial Mortgage
Cornerstone employs a team of experienced professionals who are committed to providing the highest level of service while fulfilling the varied needs of our customers. We build our business on satisfied customers - home buyers, homeowners, realtors and builders. Cornerstone strives to create value for all our partners - value for our customers, investors, shareholders, employees and the communities where we do business. Eric Baitinger
Sr. Mortgage Consultant 215.654.6085 Email Me Visit My Website |
