Mortgage Loans

Mortgage Loans

The Role of a Delaware Real Estate Agent

John Thomas January 11, 2008

Frequently, the first person you consult about buying a home in Delaware is a real estate agent or broker that is licensed in Delaware. Although real estate brokers provide helpful advice on many aspects of home buying, they may serve the interests of the seller and not your interests as the buyer.

You need to know if the agent you are speaking with about a property is a seller (Listing) agent or a buyer’s agent. The buyer’s agent works for you and has your interest at heart. The seller agent is hired by the seller to list their house for sale. The selling agent’s job is to find someone who will be willing to buy the home on terms and conditions that are acceptable to the seller. In Delaware an agent is allowed to both represent the seller and the buyer, this is called dual agency. Keep Reading...

Pending Home Sales Drop 2.6% for November 2007

John Thomas January 8, 2008

The U.S. Housing Market saw more signs of a decline in the latest report of pending home sales for existing homes. The National Association of Realtors index of pending home sales dropped 2.6%. This index measures the number of Americans signing contracts to buy previously owned homes. The index had shown a gain of 3.7% in October which was a sign that market might be stabilizing, but this latest report is another sign that 2008 is going to be another tough year for the housing market.

This report supports statements made by the Treasury Secretary Henry Paulson when he forecasted on Tuesday that the housing recession will continue and will be the biggest risk to economic expansion. Keep Reading...

First Time Home Buyer Seminar – January 26th at 10:00 AM

John Thomas January 7, 2008
There will be a Free First Time Home Buyer Seminar on Saturday, January 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.To register for the seminar, please call 302-368-7132 Ext 12 and ask for John Thomas.

For a complete list of Free seminars visit http://www.DelawareMortgageLoans.net/seminars

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

Doug MacGray’s Weekly Financial Update – Week of January 7, 2008

John Thomas January 7, 2008

A BAD START: The year has started off on a bad note.  (I am watching Chariots of Fire on ESPN Classic as I write this.  The Scottish runner, Eric Liddel slipped and fell but finished his race in first—I hope the markets mirror this performance in 2008).  After only three trading days, the S&P 500 is down 3.86% (2nd worst start ever), the Dow is down 3.5% (4th worst ever), and the Nasdaq is down 5.57% (worst ever).

JOBS: This past week’s bad news that was a bit of a surprise came in the form of the jobs report from the U. S. Commerce Department.  Expectations weren’t particularly high.  Analysts had estimated that we’d see about 70,000 new jobs in December.  The gain was only 18,000.  Also, the nation’s unemployment rate jumped to 5%. Keep Reading...

Is Buying a Home in Delaware in Today’s Economy a Good Idea?

John Thomas January 2, 2008

As a long term investment, homeownership is still one of the best investments for individual households. “Why?” you may ask. After all, the headlines say the housing market is down and out, with defaults rising at an alarming rate, and mortgage markets so frozen that buyers can’t get a home loan at any price.

What buyers need to realize is that housing markets, like all markets, inevitably have their ups and downs. Homeownership has a proven track record that is virtually unmatched by any other purchase in terms of its real benefits. Keep Reading...

Is it possible to get a Delaware Mortgage for more than the home’s value?

John Thomas January 2, 2008 Tags: , ,

Can you get a Mortgage Loan for more than the value of your home?

If you want to refinance a home you already own in Delaware, there are mortgage programs that allow you to borrow up to 150 percent of the home’s value. The program is under the special program created by the economic stimulus bill of 2009 is called the HARP Program.  It is only to lower your current mortgage rate or to switch from an ARM to a fixed rate.

It is generally not possible to buy a home and borrower more than it is worth.  One exception is buying a fixer-upper property.  There are Delaware loan programs (Delaware FHA 203k Loan) that allow you to borrow the purchase price plus the cost of the fix-up.  Both you and the property must qualify.  You must qualify income-wise and credit wise (640 Minimum FICO score).  You are able to borrow up to 110% of the after repaired value of the home on an FHA 203k Rehab Loan.  The after repaired value is based on the repairs/renovations being done on the property. Keep Reading...

Mortgage Forgiveness Act Signed into Law

John Thomas December 21, 2007

Yesterday, President Bush signed H.R. 3648, The Mortgage Forgiveness Act of 2007, into law, sparing homeowners the tax burden associated with canceled mortgage debt. Prior to this action, forgiven mortgage debt due to foreclosure, short sale, or deed in lieu of foreclosure, was considered taxable income. The new law, however, temporarily waives these taxes for debts forgiven (as high as 35%) from the beginning of 2007 to the end of 2009. The bill also extends the tax deduction for mortgage insurance premiums through 2014. Keep Reading...

Federal Reserve Board Weighs in on Mortgage Reform

John Thomas December 19, 2007

Today the Federal Reserve Board, under the authority of the Truth in Lending Act, unanimously voted to propose important changes to the mortgage industry. According to Business Week, the following proposed changes would affect subprime loans or those loans the Fed defines as “higher-priced mortgage loans” (loans with rates at least 3 percentage points above a comparable Treasury security for first mortgages and 5 percentage points for second loans, or home-equity loans):

  • Creditors would be prohibited from engaging in a pattern or practice of extending credit without considering borrowers’ ability to repay the loan.
  • Creditors would be required to verify the income and assets they rely upon in making a loan.
  • Prepayment penalties would only be permitted if certain conditions are met, including the condition that no penalty will apply for at least sixty days before any possible payment increase.
  • Creditors would have to establish escrow accounts for taxes and insurance.

The Fed also proposed another set of rules for all mortgages, including what the Los Angeles Times called “stricter disclosures on ‘yield spread premiums.'” These rules include: Keep Reading...