Blog :: 05-2013

Welcome to our blog!

Below you will find information on real estate, our local area, and the community. Please feel free to comment on any posts, we would love to hear what you think! 

Interest Rates on the Rise. Don't wait to buy!

Mortgage rates were on the rise last week.  Not only did the average rate move above the highest seen in 2013, but rates haven't been this high since May 22nd of 2012!

Of course, there is the "everything is relative" perspective, whereby we can attempt to appreciate the fact that best-execution is still around 3.75 - 3.875%; the fact remains that the day to day movement was devastatingly swift, and on the most aggressively negative end of the spectrum of possibilities heading into the day.

Despite the recent jumps and fluctuations in mortgage rates, the Fed's $85 billion monthly stimulus program has kept rates low. But this bond-buying quantitative easing program, known as QE3, will have to end at some point.

The Feds will continue the stimulus "until the outlook for the labor market (has) improved substantially," said Federal Reserve Chairman Ben Bernanke in testimony to Congress Wednesday.

"A premature tightening of monetary policy could lead interest rates to rise temporarily but would also carry a substantial risk of slowing or ending the economic recovery and causing inflation to fall further," he says.

But the Feds may adjust the size and pace of the stimulus, Bernanke told Congress. When pressed for more specifics during the hearing, he didn't rule out the possibility of tapering QE3 by Labor Day, adding that if the employment market improves, the Feds could prepare to "take a step down" in the next few meetings.

The markets immediately reacted to Bernanke's comments, putting upward pressure on rates.

Rates had just started adjusting back down after the recent spikes, but now it may take longer for rates to drop back to the lows, if at all.

In this time of investment  uncertainty in home mortgage interest rates, one thing is certain; they will rise. Take advantage of low interest rates and excellent home prices. This combination makes "now the time to buy".

 

 

HARP Refinance Program is extended through 2015

Want to take advantage of the lower interest rate and worried you would not qualify or your home won't appraise?

The Borrowers with mortgages backed by Fannie Mae or Freddie Mac will have until the end of 2015 to obtain new loans under the Home Affordable Refinance Program (HARP)

HARP previously was scheduled to expire at the end of 2013. The program allows borrowers to cut their loan payments by refinancing at lower interest rates even if they are stuck in homes that have lost value.

This program can be the answer to many homeowners' prayers.  More than 2.2 million borrowers have used the program so far. To qualify, homeowners must be current on their payments and have loans originated before June 1, 2009.  This program is not only useful to property owners who find themselves underwater but owners who have less than stellar credit scores or have reduced income can benefit from the HARP Refinance.

  • The basic requirements to qualify are:
  • Your current mortgage must be Fannie Mae or Freddie Mac owned.  ( 1 phone call to your mortgage company can get this questions answered)
  • You must be current with your loan payments
  • You must have had "no late" mortgage payments within the last 12 months.
  • Loan must have originated prior to June 1 2009.

Pick up the phone and call your mortgage broker today and ask if you can get start today!