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Delaware VA Loan – Are you eligible?

John Thomas September 23, 2007

If you are looking for a 100% financing in one loan, then nothing beats a Veterans administration loan, commonly referred to as a VA loan. The VA loan doesn’t have monthly PMI added on to the payment, which makes it usually the cheapest loan for overall payment.

The first step for applying for a Delaware VA loan is to determine if you are eligible, just go to Veterans Administration Wesite

Once you have determined you are eligible, in order to apply for a VA loan you need an eligibility certificate.  If you need to get a certificate the Form you must fill out is Form 26-1880, this form can be found on the Veterans Administration website, go to this link http://www.va.gov/vaforms/ Keep Reading...

Doug MacGray’s Weekly Market Update – September 23rd

John Thomas September 23, 2007

This is a weekly update from Doug MacGray a Certified Financial Planner who takes very good care of my clients and who I highly recommend.

INTEREST RATE CUTS: Are there downsides to the Fed’s cut in interest rates? Answer: Of course. First, the possibility of higher inflation usually goes along with a drop in rates. Most don’t think that’s a real issue these days due to the slowdown in the economy and the impact of globalization. Two major indications of this were announced this week. The Consumer Price Index (CPI) of -0.1% and the Producer Price Index (PPI) of -0.4% dropped.  Those low inflation numbers effectively gave the Fed “permission” to focus its concern on economic growth rather than price stability. As long as growth lags, and inflation remains modest, the Fed will be under pressure to keep rates low. The second negative consequence of lowering interest rates was the effect on the U. S. dollar. The dollar dropped to record lows against the Euro (¬) and fell to even parity against the Canadian dollar for the first time in more than thirty years. The weak dollar makes foreign goods and overseas investments more expensive, but it also helps American manufacturers sell more of their products in foreign markets. Higher exports usually translate into more job growth here at home. The Fed’s action won’t solve housing’s problems overnight, and it’s not likely to boost growth by that much, either. I have read and heard responses by many economists who know a lot more about this than me, and a slim majority seem positive about this move by the Fed.  (See some quotes at the bottom of this post) Keep Reading...

Delaware Mortgage Rates – Update September 21, 2007

John Thomas September 21, 2007

Yesterday Mortgage Bonds dipped below the 200 days moving average causing Delaware Home Loan Rates to raise higher again to end the day yesterday.

Today, Mortgage Bonds are trading just below the 200-day Moving Average.

Presently, I feel it is prudent to Float, as I wait and see if the Bond can muster some strength and move above this level. Should the Bond get pushed lower and farther away from the 200-day Moving Average, I will be changing my position to a Locking stance.

Delaware Mortgage Lenders just re-priced for the better today as bonds broke thru the 200-day moving average, if they can stay above the moving average for the remainder of the day, this might become new support for Mortgage Bonds. Keep Reading...

100% Financing is going to be tougher to qualify for

John Thomas September 21, 2007

Delaware First Time Home Buyers are going to have a tougher time qualifying for loans after October 20th, 2007. Fannie Mae is making changes to what it will accept for approval on all 100% financing options that are backed by Fannie Mae.

What are the changes?  Fannie Mae is no longer going to accept EA-II or EA-III approvals thru its desktop underwriting system. So if you are applying for a Delaware Home Loan thru any lender be it bank or broker, they all have to follow the same system, you will have to qualify at EA-1 or Approve-Eligible. Keep Reading...

Delaware Mortgage Loans – Market Update September 20, 2007

John Thomas September 20, 2007

Delaware Mortgage Rates are expected to climb today after falling yesterday.

Mortgage Bonds are trading lower again this morning. The euphoria has worn off from Tuesday’s rally following the interest rate cut. Traders have now assessed the long-term negative effects of the sinking Dollar and have begun selling into the market.

The US Dollar has been falling against foreign currencies. This is inflationary because it takes more Dollars to buy foreign imports, which is effectively the same thing as a price increase. Keep Reading...

Delaware Home Loan – Market Update

John Thomas September 19, 2007

The long-awaited Fed decision arrived with a bang! The Fed surprised many economists and traders with a half percent cut in both the Fed Funds and Discount Rates. Stocks soared higher and enjoyed their largest gain since 2003.

What does the Fed cut mean? Rates on consumer debt, car loans, and Home Equity lines will all benefit. But because Home Loan rates are tied more closely to inflation, it is not uncommon to see less of a reaction…or even an opposite reaction in mortgage rates.

The Fed cut also hurts rates of return on investments, which gives foreign investors less incentive to invest in US securities. This has sent the Dollar much lower against the currency of most major foreign countries. This makes foreign goods more expensive for us to buy, which adds to inflation pressures. Keep Reading...

Delaware Mortgage Loans – Market Update – September 18, 2007

John Thomas September 18, 2007

Delaware Mortgage Rates and Stocks are poised to move on whatever news comes from the Federal Reserve today.

It’s all about the Fed this afternoon as both the stock and bond markets will be reacting to their words and actions. Will it be a half or quarter point cut on the fed funds rate and will the discount rate be reduced? What will they say about inflation? It all plays out this afternoon.

In the last bit of inflation news before the Fed meets to decide monetary policy, the Producer Price Index (PPI) fell off a cliff with a reading of -1.4% in August. Lower food and energy prices during the month led the unexpected decline in the Index. Keep Reading...

Delaware Mortgage Loans – Market Update – September 17, 2007

John Thomas September 17, 2007

Delaware Mortgage Rates are the same or slightly lower to start today because of the following news;

The only economic report released today was the New York Empire State Index for September, which came in less than expected and Mortgage Bonds had little reaction. All eyes and ears are now focused on tomorrow’s Federal Open Market Committee meeting.

The debate continues on how much the Fed will cut rates. Will it be 25 or 50bp? While the cut itself will be the major headline, bond prices will react to what the Fed says about inflation. If the Fed holds its view on inflation moderating, Bond prices may benefit. But if they state that inflation is worrisome, Mortgage Bonds will likely come under pressure, causing Delaware home loan rates to rise. Keep Reading...