Mortgage Loans

Mortgage Loans

Delaware First Time Home Buyer Seminar – October 25, 2008

John Thomas October 10, 2008
There will be a Free Delaware First Time Home Buyer Seminar on Saturday, October 25, 2008, at 10:00 AM. The seminar will last about 2 hours and each participant will be able to receive a free copy of their tri-merge credit report. The seminar will cover all of the basics of buying a new home in Delaware. The seminar will cover Delaware FHA loans, Delaware VA loans, My Community loans, First Time Home Buyer Loan Programs and the Delaware USDA Rural Housing Program.

Each participant will receive a Free Audio CD on Credit Scoring, Credit Scoring Handbook, Homebuying Handbook, and an opportunity to meet with a mortgage planner to be pre-approved to buy a home at the seminar. You will also learn the importance of credit in buying a home and learn valuable tips on how to improve your credit score. Learn what programs are available to help with down payment and closing costs. The new loan limits for conventional and FHA will be covered as well as changes to borrowing 100% financing. Keep Reading...

Delaware Mortgage Rates – October 10, 2008

John Thomas October 10, 2008

This is my daily advice on floating or locking your Delaware Mortgage Rate for Friday, October 10, 2008.

There is “Blood in the Streets”!! The global markets are selling off as well as our own back yard.  Cash is king right now and nobody is buying or lending money. Money is being pulled out of everything and put on the sidelines. This is causing the bonds to sell off.  We broke through the 200-day moving average which had been a key level of support.

The news is not getting better any time soon.  We are in a Bear market and it is global. Need to bite the bullet and stop hoping rates will move lower again. Lock your rate. Keep Reading...

Delaware Mortgage Rates – October 8, 2008

John Thomas October 8, 2008

This is my daily advice on floating or locking your Delaware Mortgage Rate for Wednesday, October 8, 2008.

The Federal Reserve cut the Fed Funds Rate by 0.5% in conjunction with other World Banks.  This has set the market into wild trading with the Dow swinging from 300 points down to 170 points up to back down to back up and will probably continue the rest of the day. The mortgage-backed securities have also been swinging from positive to negative in response to the market.

The bond is still trading above the 25-day moving average and keeps bouncing off it every time it trades down so I am recommending you Float your Delaware Mortgage Rate for today. Keep Reading...

Delaware FHA New Mortgage Insurance Premiums – Oct. 2008

John Thomas September 4, 2008

In response to the passing of HR 3221, this update announces FHA’s new Mortgage Insurance Premiums for the period of October 1st, 2008 through September 30th, 2009. FHA’s Risk-Based Premiums that went into effect on July 14th, 2008 will be on hold until October 1st, 2009.

Here are the 6 things you need to know about these changes…

1. Up-front Mortgage Insurance Premiums:

  • Purchase Money Mortgages and Full-Credit Qualifying Refinances = 1.75%.
  • Streamline Refinances (all types) = 1.50%.
  • FHASecure (Delinquent Mortgagors) = 3.00%.

2. Monthly Mortgage Insurance Premiums:

  • For 30 year loans with LTV > 95%, monthly will be .55%.
  • For 30 year loans with LTV < 95%, monthly will be .50%.
  • For 15 year loans with LTV > 90%, monthly will be .25%.
  • For 15 year loans with LTV < 90%, monthly will not be required.
  • For FHASecure loans with LTV > 95%, monthly will be .55%.
  • For FHASecure loans with LTV < 95%, monthly will be .50%.

3. Mortgages with FHA case number assignments made on July 14, 2008, through and including September 30, 2008, shall maintain the risk-based premium structure for the life of the mortgage. Keep Reading...

Delaware Mortgage Rates – September 4, 2008

John Thomas September 4, 2008

This is my daily advice on floating or locking your Delaware Mortgage Rate for Thursday, September 4, 2008.

Jobless Claims came in worse which is good news for mortgage bonds.  Mortgage Backed Securities are trading much higher today and have broken through the 200 days moving average.  If you have been floating then you will see better rates today than yesterday. There could be some profit taking but if close above 200 days moving average today and again tomorrow that would be very significant because that would set a new floor of support at the 200 days moving average. Keep Reading...

Delaware Mortgage Rates – September 3, 2008

John Thomas September 3, 2008

This is my advice on floating or locking your Delaware Mortgage Rate for Wednesday, September 3, 2008.

There isn’t much-scheduled news to be released today. Bonds started off trading lower but have recovered to be even with the close from yesterday. Oil is continuing its downward spiral as it trades lower on stronger dollar and fear of demand easing. Stocks are trying to move higher but are stalled.

I am recommending FLOATING your Delaware Mortgage Rate as we continue to stay above the 100-day moving average. If you are closing in the next week then stay alert as there could be a short term pullback in bonds. Keep Reading...

Delaware Mortgage Rates – September 2, 2008

John Thomas September 2, 2008

This is my daily advice on floating or locking your Delaware Mortgage Rate for Tuesday, September 2, 2008.

Stocks have rallied today on the news that Oil prices have retreated to below $110 a barrel on news of hurricane Gustav not doing very much damage. The rally in stocks has taken some money out of bonds but the rallied stalled on the news that ISM report came out weaker than expected.  This is moving money back into bonds and we could see a nice bounce back in the mortgage-backed securities. For more information on the ISM report visit http://biz.yahoo.com/ap/080902/economy.html Keep Reading...

Weekly Financial News Update – Week of September 1, 2008

John Thomas September 2, 2008
GROSS DOMESTIC PRODUCT:  The second quarter GDP growth was revised upward to an annual rate of +3.3% from the earlier estimate of +1.9%. This was surprising.  Much of the gain was due to rising exports and falling imports, both due to the weakened dollar. In addition, consumer spending for the quarter was a robust +1.7%, partly due to the tax rebate payments. The tax rebates have ended and the dollar is strengthening.

The Economist is predicting annual GDP growth in 2008 of 0.8%. For 2009, it predicts 1.1% annual growth. T. Rowe Price economists predict GDP growth of 1.8% for 2008 and 1.5% in 2009. It is difficult to find economists predicting a bright rest of 2008 or 2009. (Caveat: See many of my earlier statements on economist predictions and The Black Swan by Nassim Nicholas Taleb.)

MARKET REACTIONS: 

The markets seemed suspicious of the GDP report; not willing to bet on continued strong growth without the federal stimulus payments. The Dow Jones Industrials were down 0.72% (down 12.98% for the year) and the S & P 500 was similarly down 0.72% (down 12.64% for the year). Keep Reading...