Mortgage Rates 2014 Payments Going Higher

There’s a ton of Economic News coming out in the next few weeks, and when taken in combination with Regulation changes, we see rising mortgage interest rates continuing into early 2014.  That is great news, as more people are feeling secure in their jobs in the work force – and BAD news, if you are one of the hopefuls, still trying to buy a dream home, and will now face higher payments.

Mortgage Rates 2014 – REPORTS ON HOUSING STRENGTH

The Housing Starts Reports for this fall was just released with a much better than expected number of homes coming out of the ground – in fact the number of new homes coming online is growing faster than it has since 1990.

We don’t necessarily see this as great news for the Real Estate Market.

Included in the Housing Starts Reports are apartment complex units.  This adds more competition for the houses on the market that are not selling.  Arguably, there are fewer First Time Home Buyer homes available in many North Carolina Metro Real Estate Markets – so bringing Apartment Buildings into those markets means more people can live closer to their jobs.


If you are a Seller in the $400,000 and up price range though – does it really hurt you as you wait for some (probable) second time home buyer to come along and take the house off your hands?  Well, it could.  Because as a Renter in a NEW Apartment Complex, you are not likely to be paying lower rent so that you can save for a larger home (that’s just MHO).

Existing home sales for November will be released this Thursday, and economists are projecting that the National Association of Realtors will then report sales of 4.98 million on a seasonally adjusted annual rate basis.

The consensus is for October Real Estate sales to decline nationally, proving our point that just because there’s a “report” saying everything is GREAT – you need to understand what the Report is ACTUALLY saying.

In fact, the FED Announced that it is going to stop purchasing quite so many mortgages as part of the QEIII Program in January , as they begin “tapering” the QE program.

This kind thinking usually leads to concerns about Inflation. 

Inflation is what tends to push mortgage rates higher.  In fact, since May of 2013, the Fannie Mae yields have gone from 2.28% to a current yield of  3.53%. What does that mean for mortgage interest rates?
In May, we hit the lowest point of the Government Backed Mortgage rates at about 1% above the Fannie Yield.  Today, after the FED Announcement, we are still in the “about” 1% above Fannie Mae yields for Government Backed 30 year fixed rate mortgages (depends on what kind of home you are purchasing, where it is located and what kind of credit profile the borrower has to get an exact rate).


(more information on Mortgage Rates 2014 and how that will change your payment when buying a home found here)

BOTTOM LINE

The best time to buy a home is right this minute. If you’ve been on the fence – hop off.  Mortgage payments are not likely to be this low for many years to come!

So what are you waiting on?  Tired of Renting?  Buy a House!

When you buy a house, you get a RAISE!  (It’s TRUE! Check out the Tax Advantages of Home Ownership!)  Call Steve and Eleanor Thorne, in Cary NC for more details about Mortgage Rates 2014 -  919-649-5058!

Originally posted at NC Mortgage Experts 

USDA Home Loans Knightdale NC

USDA Home Loans in Knightdale, NC 27545 do not have a maximum loan amount – however, the property must be located within the USDA “Eligibility” area.  Here are maps of the Wake County area, remember that the “faint pink” parts on the map do NOT qualify for USDA Loans.  All of the OTHER areas, however, DO qualify for the USDA RD Loan program.
USDA Loan Highlights:

• No Money Down Loans, Seller can pay closing costs
• In Ground Swimming pools are difficult to finance
• Credit Scores without NC Housing Aid must meet a minimum of 640, with NCHFA they can be as low as 600 (See Bottom of Page for more details on this First Time Home Buyer program available in Knightdale)
• Very low USDA PMI rates

Click here to view USDA Home Loan Maps for Knightdale NC
 


If you have questions about qualifying for a USDA Home Loan in NC, call Steve and Eleanor 919 649 5058 Remember, the USDA Home Loan Maps could be changing… in fact, almost 1/3 of North Carolina could LOSE the ability to do USDA Home Loans! Yikes!


Originally posted at NCFHAExpert.COM

USDA Home Loans Greensboro, NC

USDA Home Loans in Greensboro, NC 27408 do not have a maximum loan amount – however, the property must be located within the USDA “Eligibility” area.
Here are maps of the Guilford County area, remember that the “faint pink” parts on the map do NOT qualify for USDA Loans.  All of the OTHER areas, however, DO qualify for the USDA RD Loan program.
USDA Loan Highlights:

• No Money Down Loans, Seller can pay closing costs
• In Ground Swimming pools are difficult to finance
• Credit Scores without NC Housing Aid must meet a minimum of 640, with NCHFA they can be as low as 600 (See Bottom of Page for more details on this First Time Home Buyer program available in Greensboro)
• Very low USDA PMI rates

USDA Home Loans near Raleigh NC

In the Triangle, we are lucky to have such a large area that qualifies for USDA financing on mortgage loans!  This program offers a 100% loan for homebuyers who qualify with properties located in the more “rural” parts of the area!

Does that mean it’s just for a FARM?  Oh NO!  This is for your home, not for income producing farms.  The loans do have a guarantee fee of @ 3.5%.  This means that if you purchase a home for $100,000 (I only use this example since I can do this math in my head) then you will have an additional fee of $3500 added to your loan.

 Remember, the USDA Home Loan Maps could be changing March 27, 2013… in fact, almost 1/3 of North Carolina could LOSE the ability to do USDA Home Loans! Yikes!

The Definition of Rural for USDA Home Loans

The House of Representatives are considering a bill that will “renew” the Farm Bill.  Unlike the Senate bill to fund the USDA – the House version does NOT tackle the question of USDA Home Loans and the new “definition” of Rural.  That’s unfortunate.  The Real Estate “Housing” recovery is not in high gear – and this program change could cause further HARM to home sales in NC.

The USDA RD Program is at a critical point – with mixed signals about it’s future.  There are over 500 communities that grew between the 2000 and 2010 census that could be determined as ineligible for the program.  That about 9.1 million people or approximately 8% of the population that currently lives in an eligibile area – that would not longer have access to the program.

One study notes that:

Approximately 90 percent of these potentially ineligible places are located in metropolitan areas, where towns must have populations below 10,000 to be eligible. Not surprisingly, while they are scattered around the country, clusters of these growing exurbs are particularly noticeable in metros in California, Florida, and Arizona. Rural housing producers have invested time and money in planning developments in some of these places, and we can safely assume that many of them need more affordable housing.

At the base issue, no one in Congress seems willing to tackle legislation that would raise the population thresholds for all rural housing eligibility determinations – this close to an election.  Because of that, and the fact that population limits for USDA’s rural housing programs are not the same as for its business or utilities programs, it’s not surprising that the General Accounting office in Washington suggests that there needs to be a more “consistent” definition of Rural.  Again, we question the TIMING of the change to the program, given the Economic “recovery” that the Fed says is so fragile.

USDA Loan FAQ’s

Whatever rural is, we can agree on a sliding scale where the smaller the population the more rural a place is. A town of 5,000 feels different from a small city of 30,000. On that sliding scale, the farther a place is from a population center, the fewer resources are available to it and the more difficult housing development is.

It’s also understandable that larger towns and small cities would like to have access to a new pot of funds. USDA funds are already stretched thin, however, and getting thinner. Increased competition for a shrinking pie is likely to draw USDA housing funds to the places with larger populations, where housing development is generally easier than in remote rural areas.

So in determining the future of the USDA Rural Development program – Congress must decide if they want to DERAIL the program that is currently funding at least 1/3 of all homes sold in NC right now ??  If the USDA Home Loan program is determined to be INeligible to areas “close” to a MSA – then anyone living in the Raleigh, Johnston County area will not have access to the program.  Ditto for Greensboro, Winston, Charlotte… it’s a pretty long list!

If you have questions about OTHER no money down programs available in NC, please call Steve and Eleanor Thorne 919 649 5058 – we do many no money down loans, and offer today’s best rate!  Connect with us on Facebook or G+ for updates!

Originally Posted at NCFHAExpert.com

USDA Guarantee Fees 2012 (USDA PMI)

Congress is wrestling  with how the USDA Rural Development Department should work.  In the most recent changes, they dictated that the USDA Home Loan program will be entirely self-funded.  What does that mean?  The USDA Home Loan Program will no longer be dependent on the U.S. taxpayers to stay in business.  

Because of this,  USDA is changing how it charges it’s form of PMI on loans.  It also means that the “Definition” of what is considered RURAL in North Carolina could be changing Oct 1, 2012 too!

Effective October 1, 2012, USDA mortgage insurance rates are:

• For purchases, 2.00% upfront fee paid at closing, based on the loan size.
• For refinances, 2.00% upfront fee paid at closing, based on the loan size.
• For all loans, 0.40% annual fee, based on the remaining principal balance.

This is only a slight bump from the current rate – so it should not have a substantial impact for first time home buyers… meaning it’s only a few dollars more effective Oct 1, 2012.

So, for example, a $100,000 loan in Clayton, North Carolina would require a $2,000 USDA PMI that will be added to the loan.  So the $100,000 loan would then be $102,000.  The monthly USDA PMI charges on that $102,000 loan would be $34.  Depending on your tax bracket, this Mortgage Insurance may be Tax deductable and it’s certainly MUCH lower than the FHA PMI charges are!

The USDA Home Loan’s biggest feature is that it is a No Money Down Home Loan!  That’s right, if you qualify – this is a 100% mortgage loan.  USDA Rural Housing Program can be used by first-time buyers and repeat buyers.  We’ve done several loans for folks who currently have a house (in Tennessee for instance) and get transferred to NC – meaning that when they buy in NC… they’ll have 2 houses.

Closing costs vary by lender and location. In general, we are seeing more NC Home Buyers who are getting the Seller to pay the USDA Home Loan Closing Costs (we can help you structure that). There are Maximum Income Limits set for each county and the USDA Rural Housing Program is for primary residences only.

Effective October 1, 2012 the other BIG CHANGE to USDA Home Loans in North Carolina could be that 21 Communities will NOT qualify for the program if the maps are changed!!  Congress is considering what areas are “Rural” and weather they will Grandfather In the current maps.  If you are negotiating a contract – CALL US!

Most Banks currently look for a 640 credit score.  This is the number that GUS (the automated system) requires.  NC Housing Finance Agency allows folks to go down to 600.. the trick is that NCHFA only accepts USDA loans that have a GUS approval… well, if GUS requires 640 – that’s the number you need.

USDA No Money Down Loans are one of the most requested programs of ANY loan program we do. If you have questions about the USDA Home Loan Income Calculations, or you want to know more about No Money Down Loans, please call Steve and Eleanor Thorne 919 649 5058.  We do tons of these loans every month, and we know the guidelines!

Originally Posted at NCFHAExpert.com

DURHAM NC Maps for USDA Home Loans

We’ve had several people interested in obtaining a USDA home loan for property in Durham County.  I’ve put together a couple of maps that should help in identifying areas that qualify for this program.  As you might know – it’s one of the last TRUE 100% home loans available – and it has very low PMI!  The rates are comparable to FHA, so it’s a very affordable payment!  You do not have to have PRISTINE credit, but we generally want to see scores above 600, and 12 months of “clean credit.”

USDA does require that the property be located in a less populated area.  It does not need to be a farm – but it can’t be located downtown either.

The “darker” areas do NOT qualify.  However, as you can see – the Northern sections of Durham County have the most opportunity for this type of financing.  Here’s another map that does a close up of that area.

If you are interested in property in this area and would like to see if the address fall within the USDA “footprint” click here.  I also did another map of an area near Leesville Road on the Wake County, Briar Creek side of Durham.  Frankly – I didn’ t know that this area qualified!

So – THE TIME IS RIGHT!  We have many properties on the market, we have MONEY TO LEND, and mortgage rates are really low!  If you are looking for a home in another part of NC that might qualify for USDA home Loan financing – For a list of communities that could see CHANGES to the maps starting at the end of March 2013 click here .

This is the time to buy a house with no money down in Durham with a USDA loan! (a couple of different North Durham Maps) To see if your household income qualifies for this very low PMI loan, please click here or call Steve Thorne 919-649-5058 we know this program inside and out!

Originally Posted at NCFHAExpert.com