Current Interest Rates and other Mortgage related information:
As of August 31, 2011, the interest rate for a 30 year mortgage
with 0 points is 3.99%. Jumbo Loans are at 2.875% also with no points.
Call Robert Degen for more information at 847-810-5533 or cell 847-871-3256
It's been a great week and it is going to be a great weekend!!! Sales at U.S. retail stores rose in December for the sixth straight month, putting the finishing touches on the biggest annual gain since 1999!!! Retail sales expanded 0.6% last month as consumers spent more money at gas stations, online sites, drug stores and building supply companies.
The government´s data mirrored reports from individual retailers, which saw slower sales at the end of the year as customers looked for bargains and poor weather set in. Yet sales surged during the second half of the year of 2010 as the economy improved and most economists expect those trends to continue.
Rates on fixed rate mortgages remain at historic lows: Today on a purchase, my 15 year conforming fixed rate is 3.875% and my 30 year conforming fixed rate is 4.50% with no points. My Jumbo rates are particularly aggressive with my 5/1 Jumbo ARM at 3.875% with no points and a 30 YEAR FIXED JUMBO RATE: 5.125% UP TO $1,000,000. AT 80% LTV
Last year, almost one out of two home buyers bought for the first time, according to the Treasury Department. The addition of new homeowners helps reduce inventory by filling vacant homes and allowing the sellers of existing homes to move on to another home.
Did you know with the a 3 1/2% down FHA (loan amounts up to $410,000 on single family and $524,850 on 2 unit homes in both Lake and Cook Counties) and the seller's tax credit at closing, this is as close to buying a home with no money down that exists in the market place today?
Have you gotten your share of these kind of transactions? Call me to find out how to use these to sell more homes!!!
Time to buy a house? - 3; key points 3; * Interest rates are at historic lows. * Mortgage money is available to qualified buyers. * Rising rents are roughly equal to monthly mortgage payments. * Prices are stable. * It is THE single biggest wish in the American dream of home ownership: the "buyer´s market."
Jumbo1Loans ? Amounts that exceed conforming loan limits1
30-Year Fixed
5.25%
5-Year ARM
3.50%
Why Rent: Advantages of Home Ownership
It's staggering when you think about the cost of living, especially if you're a renter and not a home owner. If you are currently paying $1,000 a month for rented housing, over the next three years your property management company will effectively have reaped $36,000 of your hard earned cash. In most cases, you know your rent will go up every year, even if you live in an area that has rent control regulations. You're paying the mortgage for the property owner, when you could be building equity in your own real estate investment.
The tax deductions available to homeowners vary, but there are solid rules the IRS lines out for us. Real estate taxes, mortgage interest, pre-paid interest, and interest on construction loans are all things to take into consideration as tax benefits.
If you or someone you know is currently renting, I urge you to call me to discuss the many low- and no-down payment loan programs that are currently available to prospective home buyers. My team and I work cohesively with the borrower's financial consultant to ensure the client's long-term goals are met.
Why Pay Private Mortgage Insurance (PMI)?
Private Mortgage Insurance (PMI) affords many buyers an ability to own real estate and build equity that would otherwise not be available to them. It is an additional policy required by most lenders when a borrower puts less than 20% down on a purchase loan. The policy is paid for by the borrower, but protects the lender in the event of foreclosure.
Another option the borrower can consider is taking out a 1st and 2nd Trust Deed concurrently. The 2nd (or 'piggyback' loan) covers the 20% down payment and eliminates the need for PMI. However, in most cases PMI can be cancelled once the 20% payment has been reached, while a 2nd Trust Deed has to be paid back. There are times when the monthly payment is actually lower with PMI versus a piggyback.
These are things to weigh into consideration with the borrower's long-term goals in mind. For instance, I see a red flag if the borrower knows they will need to send their children to college in 15 years, and the 2nd Trust Deed includes a balloon payment about the same time. I provide comprehensive spreadsheets for my borrowers so they may have a clear understanding of their various options.
The Home Equity Line of Credit
Home equity lines of credit have become increasingly popular, and there are many types of loan programs available in this genre. This type of credit line is not meant for day-to-day expenses as a credit card would be, however, many consumers use their home as collateral to obtain an equity line of credit to pay for higher ticket items such as educational expenses or home improvements.
Borrowers may want to compare the advantages of a traditional second mortgage over an equity line of credit. But they should not compare these programs based on the Annual Percentage Rate (APR) alone. The APR in an equity line of credit is based only on the periodic interest rate, and does not include other charges such as points, maintenance fees or transaction fees. Conversely, a second Trust Deed takes all points, fees, and other charges into account when calculating the APR.
Ways to Improve a Credit Score
With identity theft on the rise, consumers are becoming increasingly aware of the importance of reviewing their credit reports. However, their thoughts about credit and its long-term impact upon their financial future typically end there until it's time to apply for a home loan. A credit score is used to evaluate how likely a borrower is to repay their loan. There are several actions a person can take to impact their score. Here are a few to keep in mind.
If someone has a credit card which has a high balance, while their remaining credit cards have low or zero balances, it's best to distribute the debt across the cards in order to change the ratio of debt to available credit.
Many consumers believe that they should close an existing credit card account if the card is inactive. It's better to keep the account open and use it periodically in order to take advantage of its contribution to their long-term credit history.
With the flood of credit card offers that come in the mail, it may be tempting to open new accounts. However, these "pre-approved" offers are not approved until the companies run a credit report which will temporarily impact the applicant's credit score. In addition, experts recommend that a person maintain between two to five credit card accounts, total, so it's best to avoid accumulating too many.
There are several factors that contribute to a credit score. But by observing the tips above, as well as making payments on time and keeping balances as low as possible, a consumer is sure to achieve superior results.
High Credit Score = Low Mortgage Rate
Credit scoring was developed in the 1960s as a means to determine whether or not consumers were likely to repay their loans. The score ranges from 350 to 850 with a higher score being extremely favorable. Essentially, a high credit score translates into lower interest rates for the borrower.
There are five factors that comprise the credit score. Payment history accounts for 35% of the score; outstanding credit balances have a 30% impact; credit history makes up 15%, type of credit factors at 10%; and inquiries influence the score by 10%. This gives the lender a snapshot of an individual's sense of financial responsibility and ability to pay back loans.
There are many quick tricks to improve the credit score, and I can provide borrowers with more information on this subject. If necessary, I guide them to a reliable resource for credit remediation. If a borrower has to pay a higher interest rate to close a loan, the tarnished credit rating will begin to improve once mortgage payments are made on time and in full. If that is the case, my team and I will be on the watch to alert the borrower when an opportunity arises to refinance and get a lower interest rate.
Is It Time To Purchase a New Home?
Deciding whether to move is no easy task. There are many financial and emotional factors to consider prior to taking that next step. However, once the decision has been made, the benefits soon become apparent.
According to the best-selling author of Remodel or Move*, Dan Fritschen, there are several reasons why people choose to move. Perhaps the size of their family has grown and their existing home has become a little too cozy. As children mature, being close to good schools becomes much more important. Job changes can also lead to a desire to move, especially when a commute increases dramatically.
In addition, there are idiosyncrasies that are unique to a particular home and its neighborhood. Is the floor plan in the existing home desirable? While remodeling can help to correct certain issues a homeowner may encounter, a bad floor plan can be insurmountable. Is the yard big enough to accommodate the family pets and a garden? Neighborhoods also vary widely. If a person prefers a neighborhood where the residents are social and kids are out playing during the day, then they would not be happy in a subdivision that is quiet and reserved.
While moving into a new home is no small task, the benefits of finding the right one are well worth the effort.
Here are the names of mortgage lenders that I like to recommend: 1. Mike RustonPhone:(773) 213 - 9267 (my number one go-to guy) 2. Kyle Mitter office and cell: 847-420-9160 3.Jerry Palmer M-Team 847-239-7850 847-609-8868-Fax: 866-225-9748
Home equity lines of credit have become increasingly popular, and there are many types of loan programs available in this genre. This type of credit line is not meant for day-to-day expenses as a credit card would be, however, many consumers use their home as collateral to obtain an equity line of credit to pay for higher ticket items such as educational expenses or home improvements.
With identity theft on the rise, consumers are becoming increasingly aware of the importance of reviewing their credit reports. However, their thoughts about credit and its long-term impact upon their financial future typically end there until it's time to apply for a home loan. A credit score is used to evaluate how likely a borrower is to repay their loan. There are several actions a person can take to impact their score. Here are a few to keep in mind.
Credit scoring was developed in the 1960s as a means to determine whether or not consumers were likely to repay their loans. The score ranges from 350 to 850 with a higher score being extremely favorable. Essentially, a high credit score translates into lower interest rates for the borrower. 
Deciding whether to move is no easy task. There are many financial and emotional factors to consider prior to taking that next step. However, once the decision has been made, the benefits soon become apparent.