(302) 703-0727

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Financial News – Week of July 2, 2007

John Thomas July 3, 2007 Tags:

Sales of new single-family homes fell 1.6% in May, far better than the 6.2% decline Wall Street had anticipated, the Commerce Department said June 26. The median price of a new home fell 0.9% to $236,100 in May, down from $238,200 in May 2006.

Existing home sales fell 0.3% in May to 5.99 million units, the slowest sales pace in four years, the National Association of Realtors said June 25. The median price of an existing home was $223,700, down 2.1% from a year earlier, marking the 10th straight month that the price has shown a year-over-year decline. Keep Reading...

LIBOR Index – What is it?

John Thomas July 2, 2007 Tags: , , , ,
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LIBOR Index

LIBOR Index – What is It?

London Inter-Bank Offered Rate (LIBOR)

LIBOR Index is the rate of interest that member banks of the British Bankers’ Association charge when they lend money to one another in the wholesale money markets in London, somewhat similar to our Fed Funds Rate.  In fact, the LIBOR Index tends to closely track the US Fed Funds Rate. LIBOR Index is a standard financial index that is used globally and in US capital markets.  The Wall Street Journal publishes the LIBOR index on a daily basis.

In general, changes in the LIBOR Index have tended to be smaller than changes in the Prime Rate.  There are several LIBOR maturities much like U.S. Treasuries, but the 1-month and 6 month are the most readily used and available LIBOR indexes for mortgage loans.  Although they are becoming increasingly more common in use for consumer loans and ARMs, LIBOR Indices have traditionally been a reference figure for corporate and commercial financial transactions. Keep Reading...

Feds Hold Feds Fund Rate at 5.25% on June 28, 2007

John Thomas June 28, 2007 Tags: , ,

Feds Fund Rate Held at 5.25% on June 28, 2007

The Feds released their statement today about their meeting over the last two days and decided to keep the Fed Funds Rate  at 5.25% as everybody expected.  The feds noted improvements in inflation but were skeptical that inflation may still become a problem which leaves the door open for them to raise rates later this year if need be.

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

John R. Thomas – NMLS# 38783 Keep Reading...

Delaware Mortgage Rates – Week of June 25th 2007

John Thomas June 27, 2007 Tags:

Delaware Mortgage Rates Week of June 25, 2007

The following are the going rates for Delaware Mortgage Loans for the week of June 25th, 2007.  The following Delaware Interest Rates assume a 720 credit score and an 80% LTV with no points and assumes owner occupancy.

30 Year Fixed Rate Mortgage – 6.625% (APR – 6.785%)

15 Year Fixed Rate Mortgage – 6.375% (APR – 6.51%)

30 Year 5-1 ARM – 6.375% (APR – 6.51%)

30 Year 1 Year ARM – 5.66% (APR – 5.875%)

Rates are subject to change.  Rates change daily and sometimes more than once per day.  Remember, as a general rule, weaker than expected economic data is good for rates, while positive data causes rates to rise Keep Reading...

Financial News for June 2007

John Thomas June 27, 2007 Tags:

Financial News for June 2007

Construction of new homes in May 2007 fell to a seasonally adjusted annual rate of 1.47 million units, a 2.1% drop from April 2007 and a 24.2% decline from a year ago, the Commerce Department reported June 19, 2007. The decrease matched economists’ expectations and reflected weakness in the South and West, which offset construction gains made in the Northeast and Midwest.

Housing permits, considered a good barometer of future activity, rose 3% in May 2007, but the increase followed a 7.1% plunge in April 2007. Last month’s stronger activity originated from a rebound in permits for apartment construction. Meanwhile, mortgage applications for single-family homes fell 1.8% and have been down four of the past five months. Keep Reading...

First Time Home Buyer Seminar July 28th from 10:00 AM till 12:00 PM

John Thomas June 26, 2007 Tags: ,

First Time Home Buyer Seminar July 28, 2007

There will be a First Time Home Buyer Seminar on Saturday, July 28, 2008, from 10:00 AM to 12:00 PM at the Primary Residential Mortgage office in New Castle, Delaware.  The Seminar is FREE!!! Come learn what it takes to buy a home in Delaware.  First time home buyer programs will be covered.  Program will also cover how to improve your credit and how to afford a mortgage payment that might be more than your current rental payment. 

All registered participates will receive a Free Credit Scoring Audio CD.  Free credit checks will be given at the seminar.  Everybody has the opportunity to receive their complete credit report and get pre-approved to buy a home at the seminar.  You will also have the opportunity to schedule a one-on-one appointment with a mortgage professional and credit counselor who can answer questions for your specific situation.  Please call 302-703-0727 to register for this seminar or register online at Delaware Home Buyer Seminar. The address of the seminar is 42 Reads Way, New Castle, DE 19720. Keep Reading...

Fannie Mae makes it tougher for First Time Home Buyers in Delaware

John Thomas June 13, 2007 Tags: ,

Fannie Mae makes it tougher for First Time Home Buyers in Delaware

Fannie Mae made significant changes to its Desktop Underwriting (DU) for My Community programs.  The guidelines have changed to make it harder for first time home buyers to qualify for a mortgage to purchase a home with little to no money down.  The guidelines took effect May 19, 2007.  Borrowers who qualified before May 19th, may no longer qualify under the new guidelines.

This affects people trying to qualify for the Delaware Bond Program loans for Delaware first time home buyers because these loans must qualify through Fannie Mae’s DU.  Fannie Mae wasn’t specific about what exactly won’t qualify but it seems anybody with a credit score below 620 certainly won’t qualify anymore. Keep Reading...

3 Big Benefits of Homeownership

John Thomas June 4, 2007 Tags: ,
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3 Big Benefits of Homeownership

There are three very attractive benefits of owning your own home: it can be a sound investment over time, you can have stable housing payments throughout your 30-year loan, and there can be significant tax breaks for as long as you own the home.   Call 302-703-0727 to get started by getting pre-approved for a home loan or APPLY ONLINE  You can also view our monthly first time home buyer seminars at Delaware Home Buyer Seminars

The First Benefit of Owning a Home – Sound Investment

A sound investment is the first benefit of buying your new home.  Your new home becomes an appreciating asset over time.  This means that as time goes by, your house is worth more money.  This, in turn, allows equity to build up in your property even if the mortgage amount were to stay the same.  The acquired equity is the difference between the fair market value of your property and the amount of your mortgage.  In the last twenty years, real estate has averaged a 5% rate of return per year.  Let’s look at an example of appreciation over time below: Keep Reading...