(302) 703-0727

(302) 703-0727

Delaware First Time Home Buyer – Importance of Checking Account

John Thomas September 9, 2007

If you are a First Time Home Buyer than you need to know the value of having your own checking account. It looks best if you have a checking account in your name.

I sometimes get clients applying for a Delaware Mortgage that don’t have a checking account. I counsel them right away to open a checking account because the lender likes to see a checking account, but there are also other advantages. First, it is easier to write a check than to get money orders to pay bills. Second its safer than carrying cash. Third, it makes it easier to keep track of where you spend your money.  Fourth, you can have paychecks, pension checks, social security checks, or other checks deposited directly into the checking account. Fifth, you should have your emergency fund in a bank account. I counsel all of my Delaware mortgage clients to have an emergency fund and to put those funds into an FDIC account. Keep Reading...

Market News Recap for First Week of September

John Thomas September 8, 2007

The first week of September, though short, was truly a roller coaster ride.  Rates were jumping up and down like jumping beans, and news articles were published left and right about the Fed dropping rates and also about job cuts.  Here is a brief summary of the past week:

Tuesday, September 4, 2007:

  1. Thornburg Mortgage sells 20 million of its shares to stay afloat in the mortgage industry.
  2. Deutsche Bank declares that the market is stabilizing stating that market liquidity is increasing every day.
  3. American Home Mortgage has final approval for their $50 million bankruptcy loan in order to finance the Chapter 11 BK they filed.

Wednesday, September 5, 2007

  1. Quality Home Loans agrees to be bought by the hedge fund manager Michael Klein. The company had declared bankruptcy on August 21, 2007.  The company has lent money under the following names: Last Chance Home Loans, Clear Credit Capital, and Last Option Lending.
  2. Mortgage Volume raises slightly over the past week, but interest rates remain stagnant.  The report shows a 1.3% increase in home loan volume for applications, and 2.3% increase in refinances where purchase business increased .4%.
  3. A J.P. Morgan market analyst stated that a rate reduction wouldn’t benefit homebuilders significantly.
  4. Credit card terms will be effected by the mortgage industry events.

Thursday, September 6, 2007

  1. Lehman Brothers declare National City Corp. will be releasing 2,000 workers or more to ease the struggling market conditions.
  2. A report was published saying Countrywide Financial Corp. will be laying off 900 jobs from its production unit and was among one of the most heavily traded stocks today.
  3. The President of the Federal Reserve Bank (William Poole) stated that an economic recession is likely now more than ever!
  4. After interest rates on a 30-year mortgage have fallen for 2 weeks, they recently moved up to 6.46% on average this past week.
  5. New home foreclosures skyrocket to a record high due to sub-prime struggles. Reported by the Mortgage Bankers Association, this marks the third quarter in a row that a record high has been set.
  6. Fed Member Dennis Lockhart discussed the housing slump as not affecting the greater community. While investors were monitoring the speech to hear if any hints were dropped on what interest rates would do, they were very much so disappointed with the outcome of the lecture.
  7. The Bank of England (which sometimes mirrors the Federal Reserve Bank) kept interest rates at a steady 5.75% in a release that said it was too early to determine if a rate cut was necessary.

Friday, September 7, 2007

  1. The Federal Reserve Bank is now reported to decrease the interest rates at least 3 times prior to year end. This was reported after a survey of the 21 primary dealers. The only dealer that did not see a rate cut coming was Cantor Fitzgerald.
  2. Indymac is supposedly releasing as many as 1,000 workers and cut its dividends by half due to continual mortgage troubles. Reports said that they would either just break even for the 3rd quarter, or post a 50 cent loss per share.
  3. Countrywide will reportedly cut 12,000 jobs which will save on overall costs which have resulted from a boom in the new foreclosures and defaults. These cuts could reportedly be softened by the lowering of rates by the Federal Reserve.
  4. One of the nation’s leaders in homebuilders (Centex Corp) tapped into JPMorgan for credit because of their funding difficulties through their previous lender.

Other new throughout this week included New Century’s label as “the poster child of what not to do in mortgage lending” (Barbara Buckley), when they were confronted by the Nevada Mortgage Lending Division.  The Executive Vice President and Chief Financial Officer of Equity Residential (Donna Brandin) resigned as of Thursday to pursue other professional and personal interests.  Goldman Sachs spent #1.3 million on Friday lobbying for issues on fair mortgage practices, borrower protection, and other real estate issues.  Bear Stearns also reported on Friday that they will attempt to double their management group which will instill a sense of confidence in the market.  As a rebutle to Tuesday’s massive sell in stock, Thornburg Mortgage’s President and COO bought 30,000 shares to attempt a boost of confidence in the company. Keep Reading...

Delaware Home Owners – Fall Maintenance Checklist

John Thomas September 7, 2007

Do you have a Fall Maintenance Checklist that you perform each year in the Fall for your home?  If not then you are going to miss the little fixes now that will turn into expensive big fixes later.

For a free Fall Maintenance Checklist to be e-mailed to you please send an e-mail with “Please Send Fall Maintenance Checklist” in the subject line of the e-mail to jthomas@balancegroup.net and I will e-mail out the list to you so that you can protect your home and your family.

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

Countrywide to cut 12,000 jobs

John Thomas September 7, 2007

Countrywide to Cut As Many As 12,000 Jobs Because Company Sees 2008 Loan Originations Dropping. The cuts, amounting to as much as 20 percent of its workforce, are needed because the company expects new mortgages to fall about 25 percent in 2008 from this year’s levels, Countrywide said.

Countrywide Cheif Executive said this is market cycle is the most severe in the contemporary history of our industry.

Countrywide is also changing the products it offers to only include products that are conventional mortgage loans. Keep Reading...

The Basics of Buying a Home in Delaware

John Thomas September 7, 2007 Tags: , , , , ,

If you know what to expect and have a trusted team of real estate and mortgage-lending professionals guide you finding and financing your first home in Delaware can be an exciting and rewarding experience.There’s great personal satisfaction in having a home you can call your own and pass on to future generations. At Primary Residential Mortgage, We are committed to helping you enjoy every benefit of home ownership.

There’s great personal satisfaction in having a home you can call your own and pass on to future generations. At Primary Residential Mortgage, We are committed to helping you enjoy every benefit of home ownership. Keep Reading...

Delaware First Time Home Buyer Programs

John Thomas September 7, 2007 Tags:

Delaware First Time Home Buyer Programs

Our Flexible Home Financing Programs Reflect Your Personal Needs and Goals

We understand there is nobody quite like you with your individual needs, your dreams, and goals. Our special programs make home ownership simpler and more affordable, with features as unique as you are.

With a dedication to excellent service, we can tailor a program to your needs, and provide personal attention every step of your way home.

Programs

  • FHA / VA
  • 100% Financing
  • Relocation
  • Renovation

We offer you everything you need to get your finances in order.  We provide all of our First Time Home Buyers with Free Seminars on the First Time Home Buying Process and on Understanding Credit and Credit Repair.  We provide budgeting information as well as budget calculators so you don’t have to do it by hand.  We also provide educational material the home buying process, the credit scoring model, insurance, and equity management. We have a team of professionals that will work with you to make sure you are buying a home that fits within your financial plan.  If you don’t have a financial plan then we will put one together for you with the assistance of our Financial Planner – Doug MacGray. Keep Reading...

Delaware Mortgage Rates & Market Update – September 7, 2007

John Thomas September 7, 2007

The Labor Department reported a loss of 4,000 Jobs in August. This is in sharp contrast to the 110,000 new jobs that analysts were expecting. Making a bad number worse, was the downward revisions of 87,000 to the last two months. This month’s loss in Jobs was the worst report in four years. On a positive note, the unemployment rate remains steady at 4.6% and is seen as the only piece of good economic news within the report.

This morning’s surprisingly weak Jobs Report has helped the Bond climb further above the 200-day Moving Average. For now, I recommend floating and I will be watching closely as the market volatility may continue

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

History of FHA

John Thomas September 6, 2007

Congress created the Federal Housing Administration in 1934. At this time, nearly two million construction workers were laid off. Only four out of ten people owned their own home. In addition, mortgage loan terms were outrageous. Borrowers had to put 50 percent down, and the note ballooned in 3 to 5 years. So the mission of the FHA was to encourage home ownership.

The FHA became a part of HUD, which is the Department of Housing and Urban Development, in the year 1965. In the mid-1980’s, the FHA transitioned to what we call direct endorsement and began approving lenders to underwrite and close their own loans. Prior to this time, the FHA did have a hand in the process of the loan.

It’s amazing to me that after 20 years of this direct endorsement program being in effect, nearly eight out of ten real estate agents I speak with still think that the FHA has a hand in the process of the loan. This is something that’s very important for you to know. When you’re working with real estate agents, you need to make it clear to them that the loan will be processed like any other loan.

It’s also very important to know what the FHA actually does and does not do. First, let’s start with what the FHA doesn’t do. The FHA does not buy loans, they do not originate loans, and they do not service loans. What the FHA does do is provide insurance on loans made by FHA-approved lenders. It is actually the pioneer in mortgage insurance. As you know, mortgage insurance protects the lender in case of default on that loan.

Here are a couple of additional FHA facts. The FHA is the only government agency that operates entirely from its own income and costs the taxpayers nothing. It is also the largest insurer of mortgages in the world, insuring nearly 30 million properties since its inception in 1934.

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