Thinking about buying a home in 2015? You can start celebrating early!

Getting a mortgage is about to get easier. That's because Fannie Mae and Freddie Mac, the two government-backed residential finance giants that backstop a majority of all home loans, have put new lending guidelines in place that should make it easier for borrowers to secure loans. Moreover, with rents still rising, it is expected that many more will purchase their first home in 2015, especially if mortgage rates don't rise too quickly. The easing of credit standards are also expected to contribute positively to the market for first time buyers.

First time Home buyers - Look for new 3% down loan options from Lord Mortgage as soon as they become available.

Is your Realtor (Or YOU!!) Getting the Most of out of Open House?

Did you know nearly half of real-estate buyers go to Open Houses?  Open Houses can be a great source of information about the property, neighborhood and local markets. However, is your Realtor collecting as much data as possible during this window of opportunity to connect with the seller? 

• Look Past Window-Dressing. A full 94 percent of sellers do some "staging," such as repainting or bringing in new furniture, says Coldwell Banker. "You can be so wowed by staging that you overlook important things," says San Jose Realtor Carl San Miguel. To focus on what matters, lift rugs to look at floors, ask the agent to turn off music so you can listen for nearby noise, and beware of any smells masked by candles. Also request a disclosure sheet, which lists known structural issues.
• You Can Learn a Lot From the Crowd. Nearly half of buyers visit Open Houses, says the National Association of Realtors, so pay attention to your fellow shoppers' comments; they may have insight into how this home stacks up. Locals often pop in, too, so if someone sounds like a neighbor, ask about the area. To get a feel for demand, visit in the last hour and peek at the sign-in sheet. A full sheet could mean the home will sell quickly, says Paul Reid, a California-based agent.
• It's Your Chance to Test-Drive the Place. Visiting a home in person allows you to pick up on details you won't see in the listing, such as the strength of the water pressure and how much you could actually cram in the closets. What buyers often forget, though, is to explore the neighborhood as well, says Dallas agent Mary Beth Harrison. Get a sense of the area by checking out surrounding streets and driving home using a different route.
• The Agent May Be Scouting You. Listing agents will often tap a colleague to run an open house, so your host may be fishing for buyers to represent. If you're in the market for an agent, this can be a chance to meet pros and see what they're like on the job. Not interested? Say so upfront to fend off any confusion, says Harrison. Shoppers who already have a buyer's agent should write his contact information on the sign-in sheet so he can handle any follow-up calls or emails on their behalf.
• Gathering Info for the Seller. When a listing agent is hosting, pepper her with questions. Ask whether there have been any upgrades to the property, if she's gotten any offers, and when and why the sellers are moving. (You may get a vague reply on that last one). Keep mum on your budget, feelings about the home, and anything else that might give the seller a leg up in negotiations. "Don't assume the agent is there to help you out," says Chicago agent Fran Bailey.

What's the Latest Forecast for Rates?

• Fixed rates on home loans fell in the past week.
• Freddie Mac announced that for the week ending December 4, 30-year fixed rates fell to 3.89% from 3.97% the week before.
• The average for 15-year loans decreased to 3.10%.
• Adjustables were also lower, with the average for one-year adjustables decreasing to 2.41% and five-year adjustables falling to 2.94%.
• A year ago, 30-year fixed rates were at 4.46%, which is over 0.5% higher than today's levels.
• Attributed to Frank Nothaft, vice president and chief economist, Freddie Mac -- "Fixed rates on home loans were down across the board in a week of underwhelming economic releases. New home sales missed consensus expectations by selling at an annual pace of 458,000 units in October and the National Association of Realtors reported that pending home sales dipped in October by 1.1 percent. The ADP's estimate for payroll growth in November was 208,000 jobs, below expectations of 225,000." 

Interested in Getting Today's Rates?  Check the most up to date info at Lord Mortgage.com 

Note: Rates indicated do not include fees and points and are provided for evidence of trends only. They should not be used for comparison purpose

Why get a FREE refinance analysis?

Why get a FREE refinance analysis? You could be missing out on the opportunity to save thousand of dollars while the rates are at historical lows. 

There are common misconceptions regarding refinancing, including: 

• We will lose all the equity we have gained over the years
• I only have 20.5 years left on my mortgage, why refinance for 30 years when my payment is affordable
• I can’t afford to refinance
• My home has lost value and isn’t worth what I paid for it

 The perfect solution could be a 15 year refinance and here’s why:

Assume the mortgage you took out in 2005 has a balance of $275,000 and the interest rate is 5.5%. Your 30 year mortgage has a principal and interest payment of $1885 and a remaining term of 20.5 years. Do you realize you can refinance for 15 years and keep the same payment, save $131,740 in interest, and pay your home off 6 years early?  Best of all, most Borrowers do NOT need an Appraisal and any cost can be added to the loan. Why do it now? 15 year rates are still at their all-time low and UNDER 3%!

What will the Feds do?

Another Fed announcement is around the corner, which mean no one knows if rates will go up or down. Nonetheless, rates have been flat over the last 12 days.   Rates are lower year-over-year mainly because of higher rates in 2013. We haven't broken the lows set last May, but no predicting what will happen after the upcoming announcement. 

Ready to sell? Invest in high-quality photos

Did you know professional photos can help you sell your home 18 days sooner on average and for $7,000 more?  According to a Redfin study, photos taken with a DSLR camera sell more quickly and at a higher price.  *Stats based on homes in the $300,000-$400,000 price range

Rates fall again!

Mortgage rates are once again nearing the lowest levels for 2014.   If you have been waiting for lower rates to lock in, now might be the best time to act.

Rates finally lower for first time since May 28th

Mortgage rates finally moving lower for the first time since May 28th.  Take note that the Employment Situation Report is released tomorrow and always has the potential to cause big changes in rates

Good news if you own a home in a flood-prone neighborhood

Own a home in a flood-prone neighborhood?  It's worth revisiting your home owner insurance rates.  You might even be due for a premium refund!  Congress just scaled back big flood insurance premiums passed in 2012. Realtors -  Selling homes in flood areas also got easier since most buyers can retain preexisting rate subsidies.

Mortgage Rates Fall Back to Unchanged After FOMC

Mortgage Rates were on the rise after Fed's March 19th announcement.   Fed released minutes today to further explain some of the factors that may have concerned markets back in March.  The Fed expressed its own concern that markets had "misconstrued a shift in Fed forecasts" for the first rate hike.  In general, "Fed accommodation" has been beneficial for interest rates.  Short version:  no need to panic and rates are headed back down to where they were on March 19th before this announcement.

Back to Normal?

Why consider ARMs (adjustable-rate loans)?  Rates are much-lower than fixed-rate loans and most homeowners don't stay in their home for 30 years. ARMs can be particularly appealing those approaching retirement age or anyone planning to sell their homes within a relatively short period of time.  Professionals completing a residency or internship program who wants to build equity should consider this option.  Even better news is the pendulum is swinging away from "restrictive" credit and back toward normalcy. The risk, of course, is the pendulum swings too far toward "easy" credit and buyers feel compelled to take ARMs as home-price appreciation and higher rates have made homes far less affordable today compared to a year ago.  It's a balance for this pendulum so it is always better to discuss your specific situation with a Mortgage Broker to truly understand your best options. 

Homes will appreciate 4.5% in 2014

According to Money's latest poll from February, Americans' average mortgage debt in 2013 was $149,925. The good news for all home owners is that the average home appreciation projected for 2014 is 4.5% Great news if you are interested in refinancing this year!

As predicted, Mortgage rates were sharply higher today.  Hope everyone floating locked last week as per my last post.  As concern grew over geopolitical tension in Ukraine, Mortgage rates went from best levels in a month to the worst levels in more than a week.

Time to Lock in Rates - Reversing Trend

Time to lock in rate if floating. Analysts predict rates creeping upward next week.  Rates gradually increased end of 2013, became lower in January and now reversing trend

Bad Credit Score = Bad Mortgage Rate

Did you know your credit score affects your ability to get the best mortgage rate, which could cost you thousands of dollars?  Check your credit report for free to help identify potential issues: https://www.annualcreditreport.com/index.action (the official gov site)

Contact me to see how we can improve your score to get the best rate possible

Cupid is working overtime this week

Did you know that 16.4% of engaged couples will end up living with parents after marriage?  Cupid is working overtime this week.  According to Huffington Post, 6 million couples will get engaged on Valentine ’s Day.  That means approximately 984,000 of them will end up living with Mom and Dad!!!    If you don’t feel like finishing your basement or giving up a spare bedroom…..contact Lord Mortgage to learn about loan options that will allow relatives to gift the down payment as well as no-money down programs.

As you can imagine - everyday I am asked "How are rates"?    Good news for consumers buying or refinancing - Mortgage rates have dropped for the fifth week in a row!

Today's mortgage rates lower than we have seen in several months thanks to global sell-off in risk-related assets. What's a risk-related asset? In this case, it's a catch-all term for investments that carry greater risk and greater reward, such as stocks and emerging market currencies. When risk-assets get trounced, bond markets are often one of the safe-haven beneficiaries, and stronger bond markets mean lower mortgage rates. What this means to you?? It is a great time to refinance or lock in your rate!  Need to know current rates?  http://www.lordmortgage.com/mortgage-rates.html

A little Monday Morning Humor.....

A little humor to get you started this week.  What would conference calls look like in person?  http://www.youtube.com/watch?v=DYu_bGbZiiQ

Mortgage Rates Push Well Into New 2014 Lows

Today's mortgage rates lower than we have seen in several months thanks to global sell-off in risk-related assets. What's a risk-related asset?  It's a catch-all term for investments that carry greater risk and greater reward, such as stocks and emerging market currencies.  When risk-assets get trounced, bond markets are often one of the safe-haven beneficiaries, and stronger bond markets mean lower mortgage rates.  What this means to you??   It is a great time to refinance or lock in your rate!  For most recent rates visit Lord Mortgage Rate Search engine

Mortgage Rates Edge Back Down to 6-Week Lows!

Sign up for free rate alert emails on my site.  With rates dropping, does an Adjustable Rate Mortgage (ARM) make sense if I plan on moving in less than 4 years? Learn more here: http://www.lordmortgage.com/loan-options.html or call me to discuss your best option

How much house can you afford?

The rule of thumb is not more than 36% of your monthly income. Does that amount include the mortgage payment or all the taxes, insurance and other maintenance costs? Use my calculators http://www.lordmortgage.com/mortgage-calculator.html to help determine your price range for your next home.  Do you feel that amount is too much house debt for a homeowner? Or should borrower increase that limit?

Jumbo Mortgage Rates Remain at Historic Lows!

For the first time in over 20 years jumbo loan  (over $417K)  rates are at or below conventional mortgage rates.  Most minimum down payments have been cut from 20% to 15%.   Good time to be a "jumbo" borrower - contact me to get a quote on your new home.   717-691-1450

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