The Federal Reserve chose to cut interest rates by 75 basis points today, or 3/4%. This is the 6th straight cut since September. So, what does this mean for you?
The 3/4 % interest rate cut affects short-term rates, like credit card rates, auto loans and home equity lines of credit. The purpose of this reduction is to entice the consumer to spend more money in our struggling economy. Doing so should boost our economy and provide some confidence to both the consumer and investors. If you currently have short term credit, you should begin to see a reduction in your payment.
How does this impact my mortgage, you may ask? This short term rate reduction does not impact long-term rates directly, however, most of the time it means that mortgage rates will begin to gradually increase from here. Mortgage rates are still very attractive and could save you a lot of money, just by getting a better rate. If you have an ARM (Adjustable Rate Mortgage) or a high rate, you should seriously consider refinancing your mortgage, before they tick up further.
Take advantage of the current mortgage rates while they are still historically low. Whether it be purchasing that new home or simply refinancing, I can help or direct you to someone who can. Check out my website at www.goneselling.com, where I update the mortgage rates daily.
Enjoy Today!
Tuesday, March 18, 2008
Wednesday, March 12, 2008
What are FHA loans? What are HUD homes?
Today I want to discuss two common acronyms used in the real estate industry. These terms have been used frequently in today's market. Let's take a quick look at each of them.
FHA stands for Federal Housing Administration. This is a government agency that insures mortgage loans, it does not actually loan the money, it merely provides mortgage insurance for the lender. If the borrower defaults on the loan, this agency will help cover the lender's loss. Recently, the FHA loan limits for our area was increased: Single family property limit is now $337,500 and 2-family property limit is now $432,050. FHA loans are most commonly used for first-time home buyers because of the low down payment (usually 3% to 5%) required. It also allows for some imperfections on your credit history and provides competitive interest rates.
HUD stands for the United States Department of Housing & Urban Development. This government agency was established to help the consumer purchase homes, by providing regulated standards and the enforcement of fair housing laws. HUD homes are those homes that have been turned over to the government for non-payment of the mortgage, in which they (FHA) insured. HUD homes are basically homes that were financed through FHA type loans that were foreclosed for one reason or another.
Hopefully, this has helped to clear up some confusion on FHA and HUD. There are a lot of HUD homes available for purchase in Southern Ohio, specifically the counties of Adams, Brown, Clermont, Clinton and Highland. Once HUD becomes the official owner of the property, it is placed into a Real Estate company's hands to sell. You can find them by doing a property search on http://www.goneselling.com/ or your favorite MLS search site. If you would like for me to assist you with your property search, don' t hesitate to contact me.
Enjoy Today!
FHA stands for Federal Housing Administration. This is a government agency that insures mortgage loans, it does not actually loan the money, it merely provides mortgage insurance for the lender. If the borrower defaults on the loan, this agency will help cover the lender's loss. Recently, the FHA loan limits for our area was increased: Single family property limit is now $337,500 and 2-family property limit is now $432,050. FHA loans are most commonly used for first-time home buyers because of the low down payment (usually 3% to 5%) required. It also allows for some imperfections on your credit history and provides competitive interest rates.
HUD stands for the United States Department of Housing & Urban Development. This government agency was established to help the consumer purchase homes, by providing regulated standards and the enforcement of fair housing laws. HUD homes are those homes that have been turned over to the government for non-payment of the mortgage, in which they (FHA) insured. HUD homes are basically homes that were financed through FHA type loans that were foreclosed for one reason or another.
Hopefully, this has helped to clear up some confusion on FHA and HUD. There are a lot of HUD homes available for purchase in Southern Ohio, specifically the counties of Adams, Brown, Clermont, Clinton and Highland. Once HUD becomes the official owner of the property, it is placed into a Real Estate company's hands to sell. You can find them by doing a property search on http://www.goneselling.com/ or your favorite MLS search site. If you would like for me to assist you with your property search, don' t hesitate to contact me.
Enjoy Today!
Tuesday, March 4, 2008
Having trouble making mortgage payments, find some Hope Now
Did your mortgage payment just increase due to your Adjustable Rate Mortgage adjusting UP? Are you already in default on your mortgage and need some help out of trouble? Maybe there is some Hope Now on the way.
President Bush announced in December of last year an initiative entitled Hope Now, which is a voluntary action or alliance with mortgage lenders to help borrowers in their time of need during this 'mortgage crisis' we are currently experiencing. This could help those people that have an adjustable rate mortgage, in which their payment has increased so much they are unable to make payments on time. You may be eligible for a rate freeze for a set period of time, which may allow you time to work out a better solution with your lender. Or you may be eligible to refinance your loan at a fixed rate.
If you feel like you could benefit from this service, please contact a Hope Now counselor by calling them at 888-995-HOPE (4673). There is someone available 24/7. When you call this number you will be speaking with a HUD (US Housing & Urban Development) approved counselor to discuss the details of your situation. You may want to allow an hour or so the first time you call and you may even have to talk with them on more than one occasion. But the results could be the difference between keeping your home or being foreclosed on.
Another bit of information concerning the mortgage crisis: President Bush signed into law a mortgage debt forgiveness law, that will not require you to pay federal taxes on debt forgiveness which was part of a loan workout agreement with your lender. This is in effect for the next 3 years. Typically, when a home owner sold their home as a short-sale (sold home for less than what they owed the bank), the home owner had to pay federal taxes on the amount that was forgiven (or the amount of loss the lender took because it sold short of the amount owed) . With this new law, that debt forgiveness will not be taxed.
Although this may be a difficult time for you at the moment, I would highly suggest you attempt to work out a plan with your lender directly or through a Hope Now counselor. I have spoken to, and heard about, borrowers being able to work out sensible plans of repayment with their lender, why not try today. You may be glad you did.
President Bush announced in December of last year an initiative entitled Hope Now, which is a voluntary action or alliance with mortgage lenders to help borrowers in their time of need during this 'mortgage crisis' we are currently experiencing. This could help those people that have an adjustable rate mortgage, in which their payment has increased so much they are unable to make payments on time. You may be eligible for a rate freeze for a set period of time, which may allow you time to work out a better solution with your lender. Or you may be eligible to refinance your loan at a fixed rate.
If you feel like you could benefit from this service, please contact a Hope Now counselor by calling them at 888-995-HOPE (4673). There is someone available 24/7. When you call this number you will be speaking with a HUD (US Housing & Urban Development) approved counselor to discuss the details of your situation. You may want to allow an hour or so the first time you call and you may even have to talk with them on more than one occasion. But the results could be the difference between keeping your home or being foreclosed on.
Another bit of information concerning the mortgage crisis: President Bush signed into law a mortgage debt forgiveness law, that will not require you to pay federal taxes on debt forgiveness which was part of a loan workout agreement with your lender. This is in effect for the next 3 years. Typically, when a home owner sold their home as a short-sale (sold home for less than what they owed the bank), the home owner had to pay federal taxes on the amount that was forgiven (or the amount of loss the lender took because it sold short of the amount owed) . With this new law, that debt forgiveness will not be taxed.
Although this may be a difficult time for you at the moment, I would highly suggest you attempt to work out a plan with your lender directly or through a Hope Now counselor. I have spoken to, and heard about, borrowers being able to work out sensible plans of repayment with their lender, why not try today. You may be glad you did.
Saturday, March 1, 2008
Is this a good time to purchase Real Estate?
I thought I would start off this new blog with the frequently asked question: Is this a good time to purchase Real Estate? The simple answer to this is YES, and not because I am a Real Estate Agent. Let me share with you a few reasons why this is a great time to buy real estate.
1) The current market is known as a buyer's market. This is because there is a lot of inventory for buyers to choose from and sellers, in order to stay competitive, cut prices and/or offer big incentives.
2) There are several 'distressed' sellers that need to sell due to adjusting rates on their mortgages, loss of salary, loss of job, etc. This opens the door of opportunity to those buyers that qualify for financing and have decent credit scores (or a lot of $$$$).
3) Interest rates are still historically low. As of this morning, you can get a 30 year fixed rate mortgage for around 6%*, 15 year fixed rate mortgage for around 5.25%*.
There are currently 2359 single family residential properties actively on the market in the Cincinnati Multiple Listing Service (MLS) in the counties of Adams (102), Brown (318), Clermont (1325), Clinton (265) and Highland (349).
The inventory of homes is plentiful, don't miss out on your opportunity of buying your next home at a great bargain!
* Rates quoted in this blog assume 30 day rate lock, $175,000.00 loan amount, 80% LTV, a minimum 680 credit score and a loan for purchase of primary residence. Rates can change significantly, without notice, throughout the day.
1) The current market is known as a buyer's market. This is because there is a lot of inventory for buyers to choose from and sellers, in order to stay competitive, cut prices and/or offer big incentives.
2) There are several 'distressed' sellers that need to sell due to adjusting rates on their mortgages, loss of salary, loss of job, etc. This opens the door of opportunity to those buyers that qualify for financing and have decent credit scores (or a lot of $$$$).
3) Interest rates are still historically low. As of this morning, you can get a 30 year fixed rate mortgage for around 6%*, 15 year fixed rate mortgage for around 5.25%*.
There are currently 2359 single family residential properties actively on the market in the Cincinnati Multiple Listing Service (MLS) in the counties of Adams (102), Brown (318), Clermont (1325), Clinton (265) and Highland (349).
The inventory of homes is plentiful, don't miss out on your opportunity of buying your next home at a great bargain!
* Rates quoted in this blog assume 30 day rate lock, $175,000.00 loan amount, 80% LTV, a minimum 680 credit score and a loan for purchase of primary residence. Rates can change significantly, without notice, throughout the day.
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