Delaware Mortgage Rates – May 8, 2008 – Float or Lock?

John Thomas May 8, 2008

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

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

It was a great day for MBS (Mortgage Backed Securities) yesterday as a sell-off in stocks prompted bond buying. The 5.5% coupon finished the day at 100-23 which is almost enough profit margin to bring 5.5% at PAR within reach for many wholesalers (some of the more aggressively priced will be there) IF WE HOLD THE GAINS. Keep Reading...

Delaware Mortgage Market Update – Wednesday May 6, 2008

John Thomas May 8, 2008

Wednesday’s bond market has opened flat despite favorable economic news. The stock markets are mixed with the Dow down 20 points and the Nasdaq up 8 points. The bond market is currently nearly unchanged from yesterday’s closing level, but we will likely see a small increase in this morning’s mortgage rates as a result of weakness in bonds late yesterday.

The Labor Department gave us today’s only relevant economic news with the release of the 1st Quarter Productivity and Costs data. It showed a 2.2% increase in productivity, which exceeded forecasts by a fairly large margin. This is good news for bonds because higher levels of productivity allow the economy to expand with low levels of inflation.

The first of this week’s two most important Treasury auctions will take place today. The Treasury Department will hold a 10-year Note sale today and a 30 Year Bond sale tomorrow. Results of the auctions will be posted at 1:30 PM ET. If they were met with strong demand from investors, we could see bond prices rise enough during afternoon trading to cause downward revisions to mortgage rates. However, lackluster bidding could lead to higher mortgage pricing this afternoon and/or possibly tomorrow.

There is no relevant economic data scheduled for release tomorrow except the weekly unemployment figures from the Labor Department. They are expected to report that 375,000 new claims for benefits were filed last week. A significantly larger number would be good news for bonds and mortgage rates, while a sizable decline could hurt rates. If they report a figure anywhere close to the 375,000, this data will likely have little impact on the markets or mortgage rates tomorrow.

If you have questions about mortgages or would like information on getting a mortgage, please feel free to call me (John Thomas) at 302-368-7132, you can APPLY ONLINE HERE.

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

What is a 1031 Exchange?

John Thomas April 23, 2008

1031 Exchange – So named because it is defined in section 1031 of the IRS Code, 26 U.S.C. 1031, this refers to a commonly utilized tax break which allows capital gains taxed to be deferred in certain cases in real estate transactions.

Considered one of the best ways to preserve wealth, the 1031 exchange, or Like Kind Exchange, generally allows a homeowner or real estate investor to sell one property and defer all capital gains taxes if the proceeds of the sale are reinvested in an asset of like kind, generally in more real estate.1031 exchanges are specifically structured transactions that join together the sale of an old property and the purchase of a new property for the purpose of deferring taxes.

Exchanges are primarily used for buying and selling investment real estate, but they can also be used for personal property that is used in a business. Examples of qualifying property include bare land, rental property, commercial buildings and homes other than your primary residence.

Prudent use of the 1031 exchange can shield all the capital gains on your properties until you reach retirement. Other tax strategies can preserve the gain thereafter. This makes real estate one of the best investments available, provided you do your homework.

The replacement property must be of the same like and kind. This means that if you are selling an investment property you must replace it with another investment property, and not a purchase a new primary residence. Before selling and purchasing any property, be sure to speak with a CPA or accountant to ensure proper compliance with the 1031 exchange regulation.

1031 exchanges can be done for situations where the next purchase is for an equal or larger amount than the selling price. This doesn’t mean that your next purchase has to be one property for a larger amount but could be several properties that are for a larger amount. Your escrow officer is best able to explain all these ins and outs.

If you are an investor and need help or advice on obtaining financing for the purchase or refinance of an investment property, please feel free to give me a call at 302-703-0727, or you can APPLY ONLINE HERE.

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

Delaware Mortgage Loans – Market Update – April 23, 2008

John Thomas April 23, 2008

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

Yesterday Existing Home Sales came in right on target which did little to sway the markets. The moving of the bond market was the continue bearish behaviour of Wall Street. Only scheduled reporting of the day has to do with oil inventories.Â This affects the bond market very little.

The only thing that might adversely affect the market this morning is the news that Bank of America will be ceasing the infamous Option Arm program once Countrywide Financial is safely under its umbrella.

Technically speaking – the FNMA 5.5% 30-year bond bounced up and hit the 25-day moving average with a resounding thud. Currently, the bond is down 35 bps on the day. Though the day is young the bond has bounced off the 100 day moving average – which is good news.

Today is another great day to lock your interest rate.

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 News Update – Week of April 21

John Thomas April 23, 2008

GOOD NEWS ON AGING:

Two research reports published in the April edition of the American Sociological Review conclude that the happiest Americans are the oldest. Among the findings: Older Americans have learned to be content with what they have. They are more socially networked. 75% of people age 57 to 85 engage in one or more social activities at least every week (e.g., socializing with neighbors, attending religious services, volunteering, etc.). Those in their 80s were twice as likely as those in their 50s to do at least one of these activities. In general, the odds of being happy increased 5% with every 10 years of age.

DEATH OF THE DEATH OF THE ESTATE TAX?:
John McCain said that if elected he will raise the estate tax exemption to $5 million and reduce the tax rate to 15%. Both Hillary Clinton and Barack Obama said that they would set a $3.5 million exemption and leave the tax rate at 45%. John McCain would index the exemption amount to inflation. Neither Democrat candidate would do so. None of the three would eliminate the estate tax. It tooks like we will be living under a federal estate tax regime for a long, long time….the only question is the rate of tax and the amount of the exemption. In any case, the credit shelter trust strategy (which is in so many existing estate plans) will continue to be an effective way to reduce overall estate tax for a married couple who are both U.S. citizens.

HELPFUL BUDGETING/CASH FLOW WEBSITE:
I checked out www.mint.com this weekend, and I am very impressed with what I have seen so far. This software is a good way to organize your cash flow and budgeting. There are two very attractive attributes to this software: It is 1) fast and easy, and 2) free.

THE MARKETS:
The roller coaster was moving up this past week. The Dow Jones Industrial Average was up 4.25% (down 3.13% for the year) and the S&P 500 was up 4.31% (down 5.31% for the year) [Past performance does not guarantee future results.] Some of the upward movement was driven by positive earnings reports from, among others, Caterpillar, Intel, IBM, Google and Honeywell. Each exceeded expectations. On the other hand, Citigroup and Merrill Lynch reported massive write-downs on their housing-related debt and other debt instruments. Both companies saw their share prices increase. The U.S. dollar slid again and commodity prices increased.

These views are provided by my good friend and business associate Doug MacGray. Doug is a certified financial planner. If you need the assistance of a great financial planner, please let me know and I will get you in contact with Doug.

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

Existing Home Sales Fell in March -But Sales were up in Delaware

John Thomas April 22, 2008

Sales of existing homes fell in March on a national basis as a severe slump in housing showed no signs of abating. The median price of a home fell compared with the price a year ago across the nation. The National Association of Realtors said sales of existing single-family homes and condominiums dropped by 2 percent in March to a seasonally adjusted annual rate of 4.93 million units.

The median price of a home sold last month was $200,700, a decline of 7.7 percent from the median price a year ago. That was the second-biggest year-over-year price decline following a record 8.4 percent drop in February. The records go back to 1999.

It marked the seventh consecutive year-over-year drop in prices, although the March sales price was up slightly from a February median price of $195,600. Economists prefer to compare the prices on a year-over-year basis because, unlike sales, the monthly prices are not adjusted for normal seasonal variations.

The March sales decline, which was in line with expectations, followed a 2.9 percent increase in sales in February. The February rise, which followed six straight monthly declines, had raised hopes that the steep housing correction could be hitting bottom.

For March, sales were down 6.5 percent in the Midwest and 3.5 percent in the South but increased by 2.2 percent in the Northeast and 2.2 percent in the West.

The Northeast was the country’s only region to experience a rise in median prices, which were up 4.6 percent compared with a year ago. Prices were down in all other regions of the country, dropping by 14.7 percent in the West, 7.1 percent in the South and 5.3 percent in the Midwest.

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

Delaware Reverse Mortgages – Common Misconceptions

John Thomas April 16, 2008 Tags: DE Reverse Mortgage, Delaware Reverse Mortgage, Reverse Mortgage

Delaware Reverse Mortgages – Common Misconceptions

Delaware Reverse Mortgages allow seniors to use the equity in their home to make up for short falls in cash flow during retirement years or to eliminate a mortgage payment and free up cash flow. Reverse Mortgages can be a very useful financial tool in the right situation. Some of the most common misconceptions regarding getting a Delaware Reverse Mortgages are outlined below. Below are some false impressions followed by Delaware Reverse Mortgages program facts. Call 302-703-0727 to get more information or to apply for a Reverse Mortgage or APPLY ONLINE

“The borrower could owe more than the value of their home.”
Reverse mortgages are “non-recourse” loans, which means that the borrower, the borrower’s heirs, or the borrower’s estate can never owe more than the appraised market value of the home at loan maturity. The estate can simply sign the deed over to the reverse mortgage lender if it is determined that the current balance on the reverse mortgage is higher than the appraised value of the home.

“The Delaware reverse mortgage lender takes the title of the borrower’s home.”
A reverse mortgage is simply a lien against the property just like a forward mortgage so the lender does not take the title of the home. The borrower will retain ownership of the property and the mortgage lender just has a note and mortgage on the property. Keep Reading...

Free First Time Home Buyer Seminar – Saturday April 26th at 10:00 AM

John Thomas April 15, 2008

There will be a Free First Time Home Buyer Seminar on Saturday, April 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, and First Time Home Buyer Loan Programs. 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