Archive for the ‘Home Loan Information’ Category
Down Payment Assistance Now Gone or Not?
Written by admin on October 15, 2008 – 12:10 pm -As of October 1st, the government has banned all seller funded Down Payment Assistance programs. The whole legality and ethical battle of why these programs should or should not be allowed is a whole another story.
However, with all the foreclosures on the market today, we really need to sell these to willing buyers to help stabilize the real estate market. Over the last 6 months, 90% of our business came from first time home buyers utilizing DPA (or DAP) from the sellers who otherwise couldn’t buy a house at this time.
These buyers have good credit and make good money to pay their monthly mortgage, however, saving for a down payment just hasn’t been possible. Thet=y deserve to own a home and enjoy the benefits of owning rather than renting.
I am really curious to see the number of home loan applications over the next few months to confirm that this ban on these programs has truly affected our real estate market in the opposite way. Only time will tell.
In some cities and communities there are still organizations with programs that offer down payment assistance to qualified borrowers , so look to see what may be available in your town.
Will the Feds lower interest rates again?
Written by admin on June 23, 2008 – 10:31 am -Well, the Feds meet again this week and the big question we are looking for is if they will raise or lower the Fed funds interest rate. Have interest rates dropped too far too fast or will the economy work itself out? That remains to be seen.
As a reminder though, when you here that Feds lower (or raise) their fed funds interest rate, this does not directly affect the 15 and 30 year mortgage rates. The Fed rates are short term rates that primarily affect credit cards, home equity loans and adjustable rate mortgages.
If you are interested in what the 30-year mortgage rates are doing, get in contact with your loan officer and ask him to keep you posted on these rates. Interest rates for home loans can change every day, not just when the Feds meet. Historically, 30-year rates are still very low, although they are just slightly higher than their 40 year lows of a few years back. It is still a good time to buy or refinance a property!
