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Delaware Mortgage Rates Weekly Update for September 23, 2013

John Thomas September 22, 2013 Tags: , , , , ,
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Delaware Mortgage Rates weekly market update for the week of September 23, 2013, by John R. Thomas with Primary Residential Mortgage in Newark, Delaware. John Thomas is the Newark, Delaware Mortgage Branch Manager and the author of the book, Your Guide to Buying Your First Home in Delaware. Call 302-703-0727 to get a free mortgage planning consultation or APPLY ONLINE for Delaware mortgage loan

Delaware Mortgage Rates dropped lower by about 0.25% after the Federal Reserve announced on Wednesday that they would not start tapering their asset purchase program called QE3. The mortgage bond market surged higher on the news and caused home loan rates to drop back lower by about 0.25%. If you look at the mortgage bond chart below you can see the big green candle on Wednesday which was the biggest one day gain since August 2011. We are recommending LOCKING your Delaware Mortgage Rate to start the week as mortgage bonds are up against a tough layer of resistance to move any higher. Keep Reading...

Delaware Mortgage Rates Weekly Mortgage Market Update for September 16, 2013

John Thomas September 15, 2013 Tags: , , , , ,
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Delaware Mortgage Rates weekly market update for the week of September 16, 2013, by John R. Thomas with Primary Residential Mortgage in Newark, Delaware. John Thomas is the Newark, Delaware Mortgage Branch Manager and the author of the book, Your Guide to Buying Your First Home in Delaware. Call 302-703-0727 to get a free mortgage planning consultation or APPLY ONLINE for Delaware mortgage loan

Delaware Mortgage Rates moved lower from the previous week as mortgage bonds built on the momentum from a poor jobs report for August. If look at the mortgage bond chart below you can see mortgage bonds jumped higher on Monday and then traded in a tight range for the rest of the week ending the week almost on Monday’s high. We are recommending FLOATING your Delaware Mortgage Rate to start the week to see if bonds can continue to rally on the poor economic reports that came out on Friday but the big event this week to watch is the Federal Open Market Committee meeting on September 18th. Keep Reading...

Maryland Home Buyer Seminar October 19, 2013

John Thomas September 15, 2013 Tags: , , ,
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Maryland First Time Home Buyer Seminar

There will be a Maryland First Time Home Buyer Seminar on Saturday, October 19, 2013, at 10:00 AM till Noon. 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 Maryland. The seminar will cover Maryland FHA loans, Maryland VA loans, Maryland USDA Rural Housing Loans, First Time Home Buyer Loan Programs, and the Maryland FHA 203k Rehab loans. Each participant will receive a Free Credit Scoring Handbook, Free Home Buying Handbook, and an opportunity to meet with a certified mortgage planner to be pre-approved to buy a home at the seminar. You will also learn the importance of credit in buying a home and learn valuable tips on how to improve your credit score. Learn what programs are available to help with down payment and closing costs. The new loan limits for conventional and FHA will be covered as well as changes to borrowing 100% financing.
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Delaware First Time Home Buyer Seminar October 12, 2013

John Thomas September 15, 2013 Tags: , , ,

Delaware First Time Home Buyer Seminar

There will be a Delaware First Time Home Buyer Seminar on Saturday, October 12, 2013, at 10:00 AM till Noon. The seminar will last about 2 hours and each participant will be able to receive a copy of their tri-merge credit report. The seminar will cover all of the basics of buying a home in Delaware. The seminar will cover Delaware FHA loans, Delaware VA loans, Delaware USDA Rural Housing Loans, First Time Home Buyer Loan Programs, and the Delaware FHA 203k Rehab loans. The Seminar is sponsored by The Neighborhood House so each participant will receive home buyer counseling credit toward the required HUD approved home buyer counseling required for Delaware First Time Home Buyer Programs.
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Delaware Mortgage Rates Weekly Update for September 9, 2013

John Thomas September 8, 2013 Tags: , , , , , ,

Delaware Mortgage Rates weekly market update for the week of September 9, 2013, by John R. Thomas with Primary Residential Mortgage in Newark, Delaware. John Thomas is the Newark, Delaware Mortgage Branch Manager and the author of the book, Your Guide to Buying Your First Home in Delaware. Call 302-703-0727 to get a mortgage planning consultation or APPLY ONLINE for Delaware mortgage loan

Delaware mortgage rates hit a 2-year high last week as mortgage bonds sold off in response to good economic reports and anticipation of better than expected jobs report. If you look at the mortgage bond chart below for the last 6-month view, you can see mortgage bonds have been trending lower since May 2013 and have been setting new record lows. This has been the long term trend for mortgage rates since May and the trend will continue as you can see there is nothing in the chart to indicate that mortgage bonds can mount a rally that would alter the trend. The second mortgage bond chart below is last 30-day view of bonds which shows in more detail how the bond has sold off starting on Monday and hit another 2 year low on Thursday. This moved Delaware home loan rates to a 2 year high. Friday we did see a recovery and a bounce higher after the August Jobs Report came out worse than expected. We are recommending LOCKING your Delaware mortgage rate if closing in the next 2 weeks as the market will be extremely volatile but if closing in 30 days or more then you can FLOAT to see if mortgage bonds can bounce higher from this level. Keep Reading...

Fannie Mae New Rules for Delaware Home Buyers January 2014

John Thomas September 8, 2013 Tags: , , , ,
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Fannie Mae New Rules for Delaware Home Buyers Effective January 2014

Fannie Mae released an update to its Selling Guide SEL-2013-06 which will be effective January 10, 2014 with the update to automated underwriting system DU version 9.1. The update makes the following changes to conventional mortgage loans sold to Fannie Mae:

  • No longer accept mortgages with terms greater than 30 years (So no more 40-year mortgages)
  • No longer accept mortgages with an interest only option
  • Adjustable Rate Mortgages (ARMs) that are 7 years fixed or 10 years fixed will need to be qualified at higher of note rate or fully indexed rate whichever is higher
  • No longer allow Loan-to-Value (LTV) over 95% (So no more 97% LTV Loans!!!)
  • Will force Lenders to purchase back loans that can be proved to fail the ATR (Ability to Repay) test

The 97% Loan that is no longer eligible includes the My Community Mortgage programs and the HFA programs. The ATR test is the biggest change that most people will not directly see as it will affect how lenders underwrite loans after January 10, 2014. The new rule says that if a loan defaults at any time during the 30-year term of the loan, Fannie Mae can review the loan and if determines the lender failed to adequately document the borrower’s ability to repay then the lender must indemnify Fannie Mae for the complete loss. The big problem is Fannie Mae has not clearly defined what a lender is supposed to do in order to document the borrower’s Ability to Repay a loan. This means Fannie Mae can subjectively decide if a lender passes the ATR test when a loan goes bad. Keep Reading...

Delaware Mortgage Rates Weekly Mortgage Market Update for September 2, 2013

John Thomas September 3, 2013 Tags: , , , , ,
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Delaware Mortgage Rates weekly market update for the week of September 2, 2013, by John R. Thomas with Primary Residential Mortgage in Newark, Delaware. John Thomas is the Newark, Delaware Mortgage Branch Manager and the author of the book, Your Guide to Buying Your First Home in Delaware. Call 302-703-0727 to get a mortgage planning consultation or APPLY ONLINE for Delaware mortgage loan

Delaware mortgage rates rallied at the beginning of the week and moved lower but the rally faded to end the week as mortgage bonds met tough resistance at the 25-day moving average and a falling trend line.  If you look at the mortgage bond chart below you can see there was a big rally on Monday in the bond market as the threat of military action in Syria loomed. The instability in the Middle East caused money to move out of the stock market into the bond market during the week but a better than expected reading on GDP caused the bond market to lose steam and sell off to end the week.  With the 25 moving average as a tough ceiling of resistance for mortgage bonds, we are recommending LOCKING your Delaware mortgage rate to start the week. If you are not closing for 60 to 180 days then you can FLOAT to see how the market plays out. Keep Reading...

Delaware USDA Rural Housing Loan Eligible Property Areas Changing October 1, 2014

John Thomas August 28, 2013 Tags: , , ,
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Delaware USDA Rural Housing Loans Eligible Property Areas are Changing October 1, 2014

The eligible property areas for Delaware USDA rural housing loans in Delaware were supposed to change on October 1, 2014, when Rural Development was switching from using the 2000 US census data to determine eligibility based on population density to using the 2010 US Census.  The current areas that are eligible which were no longer going to be eligible are Middletown, Delaware and Smyrna, Delaware.  THE CHANGE WAS DELAYED UNTIL 2021!!

The USDA Rural Housing Loan offers 100% financing for borrowers looking to purchase homes in eligible areas that fall under the household income limit.  The income limit is based on the number of people in the household and on which county the property is located in Delaware, Delaware USDA Loan 2013 Income Limits.  The New Eligible Property Areas Map effective October 1, 2013, by county are displayed below: Keep Reading...