Month February 2010

Month February 2010

Federal Reserve Raises the Discount Rate by 0.25%

The Federqal Reserve decided to raise the Discount Rate from 0.5% to 0.75% last week.  The increase took effect today Monday February 22, 2010.  The Discount Rate is the rate the federal reserve charges bank to borrower money from the Federal Reserve.  The Feds said they were keeping the Federal Funds Rate unchanged at near zero for an extended period of time.

The market was surprised by the Feds decision to increase the Discount Rate and responded by driving the yield on the treasury up.  The Fed is also changing the loan term from 28 days to overnight.  The Feds want to encourage banks to rely more on private funding and only use the Federal Reserve in emergencies.

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Can you get a Delaware Mortgage if you own more than 4 properties?

Most lenders right now will cap the maximum number of financed properties at 4.  But Fannie Mae recently relaxed there guidelines to 10 properties total.  Problem is most lenders still have the cap at 4.  Can you get a loan if you have more than 4?  The answer is yes, but there are some tough guidelines.

The guidelines are as follows for financing if you currently have 5 or more mortgages up to 10;

1) No cash-out only rate & term refinances or purchases

2) Must have 6 months of PITI for each property

3) Capped at 75% LTV

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Delaware House Hunters deterred by Second Storm of 2010

Delaware home buyers have been kept inside searching on their computers after a second snow storm paralyzes the state.  Snow began to fall shortly after 6:30 PM on Tuesday and kept going all through the day on Wednesday.
State offices were closed today February 10th and state of emergency is in effect and will be in effect tomorrow Thursday February 11th.  Many homes in New Castle County Delaware were without power as Delmarva tried to restore power to its residents.
The winds have caused the snow to drift and temperatures have made plowed roads very icy.  Delaware home buyers will have to wait till Friday or even the weekend in order to get and search for homes so they can take care of the tax credit that expires on April 30, 2010.
The snow should be cleared in time for the next Delaware First Time Home Buyer Seminar on February 27, 2010 at the Christiana Hilton Hotel in Newark, Delaware.  There are two sessions you can choose from, 10 AM till Noon or 1:00 PM till 3:00 PM.  If you would like to register, please feel free to call 302-588-3665 and ask for John Thomas or send an e-mail to DelawareMortgages@yahoo.com.
John R Thomas – Certified Mortgage Planner
Primary Residential Mortgage

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