Mortgage Loans

Mortgage Loans

Delaware Mortgage Rates – Market Update – July 14, 2008

John Thomas July 14, 2008

Here are the daily thoughts on floating or locking your Delaware Mortgage Rate.

As always – consult your favorite mortgage professional who will be able to offer the best advice for YOUR unique situation.

Bonds are trading up this morning on the news from the Feds that they have a backup plan for Fannie Mae & Freddie Mac.  This put renewed support for bond investors into mortgage-backed securities.  The Feds authorized both public companies to borrow from the Federal Reserve Bank if need be. This would eliminate any fears that either company would have a credit crunch. Keep Reading...

Christina School District Lowers School Tax Again

John Thomas July 13, 2008

Christina Public School District in Delaware lowered the School Tax a second year in a row. The district approved a reduction in the warrant tax-lowering the school tax rate by 13.9 cents.

Residents with a home assessed at $100,000 will see an annual savings of approximately $139. When you combine these savings with the reduction from last year, you get a combined savings of $153 for a home assessed at $100,000.

Here is a summary of the Tax Rate for 2009

Operating – $1.070

Tuition – $0.223

Match – $0.060 Keep Reading...

Delaware FHA Loans will have Risk Based Pricing for MI

John Thomas July 13, 2008

FHA announced it will institute risk-based premiums for Mortgage Insurance. All Delaware FHA Loans require the borrower to pay an upfront mortgage insurance premium plus a monthly mortgage insurance premium. For the first time in history, credit scores will be used by FHA to determine your premiums. The changes will go into effect on July 14, 2008.

Let’s take a closer look at the ten primary changes to the Delaware FHA guidelines:


1. Borrowers with either no score or at least 500 may get an LTV >90%.
2. Borrowers with a score of less than 500 get a maximum LTV of 90%.
3. Borrowers without scores will require manual underwriting.
4. Upfront Mortgage Insurance Premiums will range from 1.25% to 2.25%, depending on the score.
5. The Monthly Mortgage Insurance will range from .50% to .55% depending on the score.
6. The premium is based on the borrower with the lowest score.
7. If one of the borrowers has no score, then the Non-Traditional credit grade is used.
8. Credit rescoring is allowed to improve a borrower’s credit grade.9. All FHA Secure refinances >95% LTV with delinquencies have a 2.25% UFMIP and .55% MMI.
10. These changes apply to cash-out, rate & term, and non-delinquent FHA Secure refinances. Here is the link to the mortgage letter explaining the changes from FHA http://www.hud.gov/offices/adm/hudclips/letters/mortgagee/08-16ml.doc Keep Reading...

Free Budgeting Seminar – August 6, 2008 – Newark, DE

John Thomas July 13, 2008

There will be a Free Budgeting Seminar on Wednesday, August 6, 2008, from 6:30 PM till 8:00 PM at the Primary Residential Mortgage’s Office in Newark, Delaware. The seminar will cover the basics of making a household budget, how to track daily, weekly, and yearly expenses, and how to use your budget as part of an overall financial plan. Each participant will receive a free Excel Budget Calculator and a Budgeting Handbook. You will also learn how to not only cut your expenses but increase your income.

To register for the Seminar, please call 302-368-7132 Ext. 12 and ask for John Thomas. Keep Reading...

IndyMac Bank is Taken over by the Government

John Thomas July 13, 2008

IndyMac Bank was seized by the Federal Government on July 11, 2008. All of its assets were seized and its retail branches were closed. The bank will reopen on Monday under the control of the FDIC. The bank has been in trouble because of its exposure to the subprime lending crisis and the mortgage market meltdown. IndyMac CEO had released a plan to save the bank then a US Senator made some public remarks encouraging the US Government to bail the bank out, once his comment was released to the public, depositors made a run on the bank to remove their money. This caused the bank to fail. Keep Reading...

Delaware First Time Homer Buyer Seminar – July 26th

John Thomas July 12, 2008
There will be a Free Delaware First Time Home Buyer Seminar on Saturday, July 26, 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.The Seminar is being held at 256 Chapman Rd, Suite 105, Newark, DE 19702.

To register for the seminar, please call 302-368-7132 Ext 12 and ask for John Thomas.

If you would like to apply for a Mortgage Loan, you can APPLY ONLINE HERE, you can call John Thomas at 302-703-0727.

John R. Thomas – NMLS 38783

Certified Mortgage Planner – Primary Residential Mortgage, Inc.

302-703-0727 DE Office / 610-906-3109 PA Office / 410-412-3319 MD Office

248 E Chestnut Hill Rd, Newark, DE 19713

Weekly Financial Market Update – June 30, 2008

John Thomas June 30, 2008

THE MARKETS:

June has been a negative month for the equity markets. For the month, the S&P 500 is down 8.7% and the Russell 2000 is down 6.19%. For the quarter, the S&P 500 is down 3.35% and the Russell 2000 is up 1.84%. The Dow Jones AIG Commodity Index is up 9.59% for the month and 27.8% for the year. This is a “long only” index which can be volatile and about which many investors are wary (“How high can it go?”). It has been having an extraordinary run during this bearish equity market. Keep Reading...

Delaware Mortgage Rates – Market Update – June 25, 2008

John Thomas June 25, 2008

Here are the daily thoughts on floating or locking your Delaware Mortgage Rate.

As always – consult your favorite mortgage professional who will be able to offer the best advice for YOUR unique situation.

The Bond market today is down so far in the morning waiting on the Fed Decision later today. The market will be extremely volatile awaiting the decision.  We had some nice improvement on rates yesterday but some lenders came out this morning with some worse pricing.

New Home Sales for May came out today at 512,000, which was in line with expectations but was down from April’s report. The median price of a home sold was also down by 5.7 percent from a year ago. The median home price was $231,000. The inventory of unsold homes was up to 10.9 months. Keep Reading...