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Cost of Waiting to Purchase a Home

John Thomas December 3, 2018 Tags:
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Cost of Waiting to Purchase a Home

If you are thinking of waiting to purchase a home, think again!  There is a definite cost of waiting to purchase a home.  Home ownership has significant financial benefits but there is still a significant number of renters and people living with family that are delaying investing in one of the biggest sources of long term wealth.  With mortgage interest rates and home prices expected to continue to increase, waiting to purchase a home is definitely going to cost more money and even more than most would think.  If you are interested in getting started right away on getting pre-approved for a mortgage, call us at 302-703-0727 or APPLY ONLINE Keep Reading...

Mortgage Rates Weekly Update [December 3 2018]

John Thomas December 2, 2018 Tags: ,
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Mortgage Rates Weekly Update for December 3, 2018

Mortgage Rates Update for December 3, 2018 by John R. Thomas with Primary Residential Mortgage, Inc. in Newark, Delaware. Get advice on Locking or Floating your Mortgage Rate to start the week as well as the latest housing and finance news updates. John Thomas is the Branch Manager, a Delaware Loan Officer and the author of the best selling book, Your Guide to Buying Your First Home in Delaware. Call 302-703-0727 for a Rate Quote or Apply Online for Rate Quote

Mortgage Rates have moved lower last week after mortgage bonds were finally able to break above the 50 day moving average.  If you look at the mortgage bond chart below, you can see mortgage bonds broke through the 50 day moving average on Tuesday and rallied higher the rest of the week ending on Friday with a Green Candle.  Mortgage bonds are now trading in the middle of a wide trading range between the 50 day moving average acting as a support and a ceiling of resistance at 100.914.  Bonds are still in overbought territory and any follow through to the downside could move rates higher as they move back down toward the 50 day moving average.  We are recommending carefully FLOATING your mortgage rate to see if bonds can make a run at resistance and move rates even lower but if we get a negative crossover signal we would switch to locking right away. Keep Reading...

Understanding Homeowners Insurance

John Thomas November 29, 2018 Tags:
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Understanding Homeowners Insurance

Your mortgage lender will require that you have Homeowners Insurance on the property that is effective the date of settlement.  The lender calls the insurance Hazard Insurance, but everybody else calls it homeowners insurance.  If you have questions about the correct insurance policy or need to get a recommendation to a great insurance agent please give us a call at 302-703-0727.  If you would like to get pre-approved for a mortgage APPLY ONLINE.

Homeowners insurance is designed to repair or replace your home in the event it is damaged or destroyed.  Homeowners insurance also protects the valuables within your home in the event they are stolen or destroyed; this is termed personal property coverage on the policy.  Your homeowners insurance policy also provides you with personal liability insurance.  This protects you in case you are named as a defendant in a civil lawsuit.  It will not cover the cost of a criminal trial or any penalty set forth in a criminal trial. Keep Reading...

Mortgage Rates Weekly Update [November 26 2018]

John Thomas November 26, 2018 Tags: ,
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Mortgage Rates Weekly Update for November 26, 2018

Mortgage Rates Update for November 26, 2018 by John R. Thomas with Primary Residential Mortgage, Inc. in Newark, Delaware. Get advice on Locking or Floating your Mortgage Rate to start the week as well as the latest housing and finance news updates. John Thomas is the Branch Manager, a Delaware Loan Officer and the author of the best selling book, Your Guide to Buying Your First Home in Delaware. Call 302-703-0727 for a Rate Quote or Apply Online for Rate Quote

Mortgage Rates have rebounded since hitting a 7 year high in November, helped by a sell off in the stock market which continued on Friday.  If you look at the Fannie Mae 4.0% Mortgage Bond Chart below you can see mortgage bonds have been trapped in a tight trading range this past week between the 25 day moving average (Support) and the 50 Day Moving Average (Resistance).  If bonds can break above the 50 day moving average they have some room to move higher which would move mortgage interest rates lower.  When we looking at the trading technicals there has been an overbought sign on the stochastic chart and if we see a negative crossover confirm it could mean a selloff in mortgage bonds which would move mortgage interest rates higher.  We are recommending CAREFULLY FLOATING Your Mortgage Rate to start the week to see if bonds can break above the 50 day moving average but if we see bonds test the 25 day moving average or we see a crossover on the Stochastic chart, we would quickly switch to a locking stance. Keep Reading...

Understanding Your Mortgage Payment

John Thomas November 22, 2018 Tags:
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Understanding Your Mortgage Payment

Your monthly Mortgage Payment consists of paying back the money you borrowed (principle balance) and the interest charged to borrower the money.  This is commonly called your Principle & Interest or P&I for short.  The actual payment is calculated based on how much you owe, the interest rate on your mortgage loan, and the term of the loan (amortization).  Below is an example:

Amount Owed (Principle Balance) – $200,000

Mortgage Interest Rate – 5.5%

Term (Amortization) – 30 Years

Monthly Mortgage Payment (P&I) – $1,135.58 Keep Reading...

Understanding the Home Appraisal

John Thomas November 21, 2018 Tags:
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Understanding the Home Appraisal

The Home Appraisal is required by your mortgage lender so that they can determine the value of your home compared to the sales price.  The home appraisal is ordered by the mortgage lender through a independent third party called an appraisal management company or AMC for short.  The AMC will assign a licensed appraiser to take the order.  The mortgage lender and the borrower are not allowed to know who the appraiser is prior to the inspection of the home and the completion of the appraisal report.  This rule is to ensure that the lender and the borrower do not try to influence the appraiser’s opinion of value.  The appraiser’s opinion of value on the home appraisal report is called the “fair market value” of the property.  If you would like to get started on a mortgage loan to purchase or refinance a home, give the John Thomas Team a call at 302-703-0727 or APPLY ONLINE Keep Reading...

Mortgage Rates Weekly Update [November 19 2018]

John Thomas November 18, 2018 Tags: ,
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Mortgage Rates Weekly Update for November 19, 2018

Mortgage Rates Update for November 19, 2018 by John R. Thomas with Primary Residential Mortgage, Inc. in Newark, Delaware. Get advice on Locking or Floating your Mortgage Rate to start the week as well as the latest housing and finance news updates. John Thomas is the Branch Manager, a Delaware Loan Officer and the author of the best selling book, Your Guide to Buying Your First Home in Delaware. Call 302-703-0727 for a Rate Quote or Apply Online for Rate Quote

Mortgage Rates have hit a 7 year high on the week of November 8th but have since been able to move lower as mortgage bonds have rallied.  If you look at the mortgage bond chart below you can see mortgage bond were able to rally off support the previous Friday with the green candle.  Mortgage bonds have followed through all week closing up everyday but Thursday and ending the week with a green candle in the face of a stock market that traded higher on Friday as well. Mortgage bonds have broken through a ceiling of resistance and are just below the 50 day moving average.  If they can break above the 50 day moving average we could see mortgage rates move lower.  Because of all this, we are recommending FLOATING your mortgage rate to start the week to see if mortgage bonds can continue to rally higher. Keep Reading...

Mortgage Rates Weekly Update [November 12 2018]

John Thomas November 10, 2018 Tags: ,
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Mortgage Rates Weekly Update for November 12, 2018

Mortgage Rates Update for November 12, 2018 by John R. Thomas with Primary Residential Mortgage, Inc. in Newark, Delaware. Get advice on Locking or Floating your Mortgage Rate to start the week as well as the latest housing and finance news updates. John Thomas is the Branch Manager, a Delaware Loan Officer and the author of the best selling book, Your Guide to Buying Your First Home in Delaware. Call 302-703-0727 for a Rate Quote or Apply Online for Rate Quote

Mortgage Rates have been moving higher since end of August and had big sell off after Jobs Report for October 2018 and have followed through on that sell off until finding support on Thursday.  If you look at the Fannie Mae 4% Mortgage Bond Chart below you can see mortgage bonds have sold until until Thursday when Red Candle stopped right at support at 99.391.  Mortgage bonds were able to rally higher off this support on Friday as you can see with the green candle.  Mortgage ended the week about where they started and are in the middle of a wide trading channel.  Mortgage bonds have been following the lead of the 10 year US Treasury so we predict it will continue to do so this week absent any unexpected economic news.  The 10 Year stopped right at support at 3.19% yield and if it can break below this, mortgage bonds could continue to move higher and move mortgage interest rates lower so we are recommending carefully FLOATING Your mortgage rate to start the week but we have to watch the 10 year, if it doesn’t break lower and moves back up toward the 3.25% level, we would quickly switch to a locking stance.
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