Weekly Mortgage Rates Update
Mortgage rates for the week of May 27, 2010:
30-Year Fix Rate Mortgage: 4.78 percent
15-Year Fix Rate Mortgage: 4.21 percent
5/1-Year Adjustable Rate Mortgage: 3.97 percent
1-Year Adjustable Rate Mortgage: 3.95 percent
203(k) Rehab Mortgage Insurance
Section 203(k) fills a unique and important need for homebuyers. When buying a house that needs repair or modernization, homebuyers usually have to follow a complicated and costly process. The interim acquisition and improvement loans often have relatively high interest rates, short repayment terms and a balloon payment. However, Section 203(k) offers a solution that helps both borrowers and lenders, insuring a single, long-term, fixed or adjustable rate loan that covers both the acquisition and rehabilitation of a property. Section 203(k) insured loans save borrowers time and money. They also protect the lender by allowing them to have the loan insured even before the condition and value of the property may offer adequate security.
All persons who can make the monthly mortgage payments are eligible to apply. Cooperative units are not eligible; individual condominium units may be insured if they are in projects that have been approved by FHA or the Department of Veterans Affairs, or meet certain Fannie Mae guidelines.
The types of improvements that borrowers may make using Section 203(k) financing include:
- structural alterations and reconstruction
- modernization and improvements to the home’s function
- elimination of health and safety hazards
- changes that improve appearance and eliminate obsolescence
- reconditioning or replacing plumbing; installing a well and/or septic system
- adding or replacing roofing, gutters, and downspouts
- adding or replacing floors and/or floor treatments
- major landscape work and site improvements
- enhancing accessibility for a disabled person
- making energy conservation improvements
HUD requires that properties financed under this program meet certain basic energy efficiency and structural standards. Applications must be submitted through a FHA approved lender.
Weekly Mortgage Rates update
Mortgage rates for the week of April 15, 2010:
30-Year Fix Rate Mortgage: 5.07 percent
15-Year Fix Rate Mortgage: 4.40 percent
5/1-Year Adjustable Rate Mortgage: 4.08 percent
1-Year Adjustable Rate Mortgage: 4.13 percent
Contact me for weekly updates on mortgage rates.
Rising Mortgage Rates
Mortgage rates for the week of April 8, 2010:
30-Year Fix Rate Mortgage: 5.21 percent
15-Year Fix Rate Mortgage: 4.52 percent
5/1-Year Adjustable Rate Mortgage: 4.25 percent
1-Year Adjustable Rate Mortgage: 4.14 percent
Contact me for weekly updates on mortgage rates.
NAR Reports Rise in Pending Home Sales
A National Association of Realtors (NAR) index that gauges pending home sales of existing homes rose 17.3 percent year-over-year in February and rose 8.2 percent from January level.
The association also updated its annual economic forecast, which raises expectations for new single-family home sales this year.
The Pending Home Sales Index, based on purchase contracts signed but not yet closed, is considered to be a leading indicator for future sales. An index score of 100 is the average level of contract activity in 2001, the first year that index data was collected.
Regionally, the seasonally adjusted index rose 21.8 percent in the Midwest, 9.2 percent in the South, and 9 percent in the Northeast while falling 4.8 percent in the West in February compared to the same month in 2009.
And the index rose 18.9 percent in the Northeast, 18.7 percent in the Midwest, 17.5 percent in the South and 14.6 percent in the West year-over-year in February, NAR reported.
In its latest forecast report, NAR anticipates that existing-homes sales will rise 6.5 percent this year and 3.7 percent in 2011, with new, single-family home sales rising 0.6 percent this year and 56.9 percent in 2011.
The association’s latest annual forecast revises upward the new-home sales projection, which is said in a previous forecast would fall 12.4 percent this year and rise 49.4 percent in 2011.
The median price of existing-home sales is expected to rise 2.7 percent this year, to $177,200 and another 4.3 percent in 2011, to $184,800. And NAR expects the new-home median price will also rise 2.7 percent this year, to $221,700, and to rise 5.1 percent to $233,100. In its previous forecast, NAR projected a 2 percent rise in the new-home price this year.
According to NAR forecast, the interest rate for a 30-year fixed-rate mortgage is expected to average 5.4 percent this year and 6.2 percent next year.
Mortgage Rates On The Rise
Mortgage rates for the week of April 1, 2010:
30 year fix rate mortgage: 5.08 percent
15 year fix rate mortgage: 4.39 percent
5/1 year adjustable rate mortgage: 4.10 percent
1 year adjustable rate mortgage: 4.05 percent
Contact me if you need more information.
FHA Increasing Up Front Mortgage Insurance Premium(MIP)
Effective April 5, 2010, FHA loans which case numbers are assigned on or after April 5, 2010 will collect an upfront mortgage insurance premium(MIP) of 2.25 percent. This policy change will increase premiums for purchase money and refinance transactions, including FHA-to-FHA credit-qualifying and non-credit qualifying streamlined refinance transactions.
This is one of several changes FHA is implementing and please check back for updates.
Military Members Get $8000 Tax Credit Extension
Congress has made special exceptions for members of the military, the foreign service and the intelligence community that apply to both the $8000 tax credit for first time home buyers and the $6500 for repeat home buyers.
Exemption From Tax Credit Recapture Rules
- Homes that are sold or cease to be used as a principal residence within 3 years of the initial purchase are subject to recapture of the tax credit.
- However, qualified service members who sell or move from a tax credit home within 3 years of the initial purchase due to official extended duty are exempt from the recapture rule.
Extension of Tax Credit Deadline
- The home buyer tax credit is available for qualified purchases with a binding sales contract in place on or before April 30, 2010 and closed by June 30, 2010.
- However, for qualified service members who are ordered on a period of official extended duty, these dates are extended for one year. For these home buyers, the tax credit applies to sales with a binding sales contract in place on or before April 30, 2011 and closed by June 30, 2011.
- A person who is forced to return to the U. S. for medical reasons before completing an assignment of at least 90 days of qualified official extended duty outside of the United States may qualify for the one-year extension.
Definitions
Qualified service member: A member of the uniformed services of the U.S military, a member of the Foreign Service of the U.S., or an employee of the intelligence community.
Official extended duty: Any period of extended duty outside of the United States for at least 90 days during the period beginning after December 31, 2008 and ending before May 1, 2010.
Please consult with your Tax Advisor to see if you qualify. Check IRS.gov website for more detailed information.
Tell Me About The $8000 Tax Credit
This is a question that, I get from many first time home buyers. I hope that this will help answer your many questions regarding this tax credit. Remember, that it does expire and you still have time to start looking for your new home.
- The $8,000 tax credit is for first-time home buyers only. For the tax credit program, the IRS defines a first-time home buyer as someone who has not owned a principal residence during the three-year period prior to the purchase.
- The tax credit does not have to be repaid.
- The tax credit is equal to 10 percent of the home’s purchase price up to a maximum of $8,000.
- The tax credit applies only to homes priced at $800,000 or less.
- The tax credit now applies to sales occurring on or after January 1, 2009 and on or before April 30, 2010. However, in cases where a binding sales contract is signed by April 30, 2010, a home purchase completed by June 30, 2010 will qualify.
- For homes purchased on or after January 1, 2009 and on or before November 6, 2009, the income limits are $75,000 for single taxpayers and $150,000 for married couples filing jointly.
- For homes purchased after November 6, 2009 and on or before April 30, 2010, single taxpayers with incomes up to $125,000 and married couples with incomes up to $225,000 qualify for the full tax credit.
Please consult with your Tax Advisor to see if you qualify. Contact me if you need more info.
Mortgage Rates Remain Under 5 Percent
Mortgage rates remain under 5 percent for two weeks straight, as reported by Freddie Mac this week, the average interest rate on a 30 year fixed loans coming in at 4.95 percent from 4.97 percent a week earlier.
Interest rates on a 15 year fixed loans averaged 4.32 percent compared to 4.33 percent the previous week. Rates on 5 year adjustable rate mortgages settled at 4.05 percent, a decline from 4.11 percent last week.
Who do you know that wants to buy or seller a home? Interest rates are very low and the $8,000 Tax Credit is still available if you qualify. Give me a call for more details. Let’s start looking for your dream home.
Crystal T. Terrell
REALTOR®
Contact info:
766 Old York Road Jenkintown, PA 19046 Direct: 215-881-8433
Email me for more info:
Pennsylvania First Time Home Buyer Assistance 