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Understanding Your Debt to Income Ratio (DTI)

John Thomas December 27, 2018 Tags: ,
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Understanding your Debt to Income Ratio (DTI)

Your Debt to Income Ratio is used by mortgage lenders to determine how much money you can borrower for the purchase or refinance of a home.  Your Debt to Income Ratio is abbreviated as DTI for short.  The DTI is a comparison of your gross monthly income to your monthly liability payments.  Mortgage Lenders use two Debt to Income ratios when determining if you qualify for a mortgage loan: Housing DTI and Total DTI.  If you have questions about qualifying for a mortgage loan or would like to get pre-approved, call 302-703-0727 or APPLY ONLINE. Keep Reading...

Mortgage Rates Weekly Update [December 24 2018]

John Thomas December 24, 2018 Tags: ,
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Mortgage Rates Weekly Update for December 24, 2018

Mortgage Rates Update for December 24, 2018 by John R. Thomas with Primary Residential Mortgage, Inc. in Newark, Delaware. Get advice on Locking or Floating your Mortgage Rate to start the week as well as the latest housing and finance news updates. John Thomas is the Branch Manager, a Delaware Loan Officer and the author of the best selling book, Your Guide to Buying Your First Home in Delaware. Call 302-703-0727 for a Rate Quote or Apply Online for Rate Quote

Mortgage Rates have move to the lows not seen since the spring of 2018 as bonds have benefited from a sell off in the stock market.  If you look at the mortgage bond chart below, you can see bonds broke through the 200 day moving average last Tuesday which was a very significant ceiling of resistance.  Bonds stayed above the 200 day moving average all week so it is now a very good floor of support for bonds.  Monday stocks are expected to continue to sell off as a relief rally has not been evident and a strong floor of support for stocks is still lower.  We are recommending FLOATING Your mortgage rate into holiday as bonds should benefit from a continued sell off in stocks,  If stocks find a floor of support and mount a rally we quickly switch to locking your mortgage rate. Keep Reading...

Delaware FHA Loan Limits for 2019

John Thomas December 22, 2018 Tags: ,
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Delaware FHA Loan Limits for 2019

Delaware FHA Loan Limits for 2019 were raised in all three counties of Delaware effective January 1, 2019.    The Federal Housing Administration increased its mortgage loan limits by almost 7% for the new year, mirroring the increase in conventional loans.  The new base loan limit maximum was increased from $294,515 to $314,827 for a single unit home.  In some high-cost areas  of the country, the maximum loan limit was increased to $726,525.  The department of Housing and Urban Development (HUD) released Mortgagee Letter 2018-11 on December 14, 2018 which increased the loan limits for 2019 nationwide for all Forward Mortgage loans insured by FHA.  Call 302-703-0727 to apply for a Delaware FHA Loan or get started online at http://www.PRMILoanApplication.com Keep Reading...

Cost of Waiting to Purchase a Home

John Thomas December 3, 2018 Tags:
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Cost of Waiting to Purchase a Home

If you are thinking of waiting to purchase a home, think again!  There is a definite cost of waiting to purchase a home.  Home ownership has significant financial benefits but there is still a significant number of renters and people living with family that are delaying investing in one of the biggest sources of long term wealth.  With mortgage interest rates and home prices expected to continue to increase, waiting to purchase a home is definitely going to cost more money and even more than most would think.  If you are interested in getting started right away on getting pre-approved for a mortgage, call us at 302-703-0727 or APPLY ONLINE Keep Reading...

Mortgage Rates Weekly Update [December 3 2018]

John Thomas December 2, 2018 Tags: ,
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Mortgage Rates Weekly Update for December 3, 2018

Mortgage Rates Update for December 3, 2018 by John R. Thomas with Primary Residential Mortgage, Inc. in Newark, Delaware. Get advice on Locking or Floating your Mortgage Rate to start the week as well as the latest housing and finance news updates. John Thomas is the Branch Manager, a Delaware Loan Officer and the author of the best selling book, Your Guide to Buying Your First Home in Delaware. Call 302-703-0727 for a Rate Quote or Apply Online for Rate Quote

Mortgage Rates have moved lower last week after mortgage bonds were finally able to break above the 50 day moving average.  If you look at the mortgage bond chart below, you can see mortgage bonds broke through the 50 day moving average on Tuesday and rallied higher the rest of the week ending on Friday with a Green Candle.  Mortgage bonds are now trading in the middle of a wide trading range between the 50 day moving average acting as a support and a ceiling of resistance at 100.914.  Bonds are still in overbought territory and any follow through to the downside could move rates higher as they move back down toward the 50 day moving average.  We are recommending carefully FLOATING your mortgage rate to see if bonds can make a run at resistance and move rates even lower but if we get a negative crossover signal we would switch to locking right away. Keep Reading...

Understanding Homeowners Insurance

John Thomas November 29, 2018 Tags:
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Understanding Homeowners Insurance

Your mortgage lender will require that you have Homeowners Insurance on the property that is effective the date of settlement.  The lender calls the insurance Hazard Insurance, but everybody else calls it homeowners insurance.  If you have questions about the correct insurance policy or need to get a recommendation to a great insurance agent please give us a call at 302-703-0727.  If you would like to get pre-approved for a mortgage APPLY ONLINE.

Homeowners insurance is designed to repair or replace your home in the event it is damaged or destroyed.  Homeowners insurance also protects the valuables within your home in the event they are stolen or destroyed; this is termed personal property coverage on the policy.  Your homeowners insurance policy also provides you with personal liability insurance.  This protects you in case you are named as a defendant in a civil lawsuit.  It will not cover the cost of a criminal trial or any penalty set forth in a criminal trial. Keep Reading...

Mortgage Rates Weekly Update [November 26 2018]

John Thomas November 26, 2018 Tags: ,
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Mortgage Rates Weekly Update for November 26, 2018

Mortgage Rates Update for November 26, 2018 by John R. Thomas with Primary Residential Mortgage, Inc. in Newark, Delaware. Get advice on Locking or Floating your Mortgage Rate to start the week as well as the latest housing and finance news updates. John Thomas is the Branch Manager, a Delaware Loan Officer and the author of the best selling book, Your Guide to Buying Your First Home in Delaware. Call 302-703-0727 for a Rate Quote or Apply Online for Rate Quote

Mortgage Rates have rebounded since hitting a 7 year high in November, helped by a sell off in the stock market which continued on Friday.  If you look at the Fannie Mae 4.0% Mortgage Bond Chart below you can see mortgage bonds have been trapped in a tight trading range this past week between the 25 day moving average (Support) and the 50 Day Moving Average (Resistance).  If bonds can break above the 50 day moving average they have some room to move higher which would move mortgage interest rates lower.  When we looking at the trading technicals there has been an overbought sign on the stochastic chart and if we see a negative crossover confirm it could mean a selloff in mortgage bonds which would move mortgage interest rates higher.  We are recommending CAREFULLY FLOATING Your Mortgage Rate to start the week to see if bonds can break above the 50 day moving average but if we see bonds test the 25 day moving average or we see a crossover on the Stochastic chart, we would quickly switch to a locking stance. Keep Reading...

Understanding Your Mortgage Payment

John Thomas November 22, 2018 Tags:
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Understanding Your Mortgage Payment

Your monthly Mortgage Payment consists of paying back the money you borrowed (principle balance) and the interest charged to borrower the money.  This is commonly called your Principle & Interest or P&I for short.  The actual payment is calculated based on how much you owe, the interest rate on your mortgage loan, and the term of the loan (amortization).  Below is an example:

Amount Owed (Principle Balance) – $200,000

Mortgage Interest Rate – 5.5%

Term (Amortization) – 30 Years

Monthly Mortgage Payment (P&I) – $1,135.58
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