After rising to start the year, mortgage rates have declined once again, giving those looking at Houston homes more flexibility when looking to buy properties.
According to Freddie Mac (http://www NULL.freddiemac NULL.com/pmms/release NULL.html?week=9&year=2011), the average rate for a 30-year fixed-rate loan last week was 4.87 percent which is down from 4.95 percent the previous week. Rates for 15-year FRMs also fell, dropping from 4.22 percent to 4.15 percent.
"Mortgage rates saw an overall improvement this week. Interest rates for 30-year fixed mortgages were almost 0.2 percentage points below this year's high set just three weeks ago," said Freddie Mac chief economist Frank Nothaft. "This means that homebuyers could now expect to pay $263 less per year on a $200,000 loan."
However, Nothaft also expressed concern with demand in the housing market, with low levels of new home sales and two consecutive drops in the National Association of Realtors' Pending Home Sales Index.
The pending sales index dropped 2.8 percent in February to a reading to 88.9, which is 1.5 percent below the 90.3 mark of a year ago. However, it is still higher than most readings from late last year, when the market was recovering from the absence of the homebuyer tax credit.
Mortgage rates fall sharply
Debate over loan limits won’t affect Houston
As lawmakers in Washington, D.C. debate the future of Fannie Mae and Freddie Mac, some of the discussion has focused on the reduction of loan limits for government-backed loans. However, those changes won't affect the Houston real estate market.
In 2008, officials raised the maximum loan value for mortgages that could be guaranteed by Fannie Mae and Freddie Mac from the standard $417,000 to as high as $729,750 in some high-priced areas, like New York City, in essence making it easier to buy homes in those cities.
A number of sources have said that lawmakers will likely let the higher limits expire as planned in September, instead of extending them like they did in 2010, when the economy was less stable. That will make mortgages for higher-end homes more expensive in some parts of the country.
But for Houston homes, those higher loan limits didn't apply, because officials said that Houston homes were affordable enough that they didn't need the extra government support. In fact, no cities in Texas qualified for an elevated limit.
Other studies have also shown the affordability of Houston homes. A recent study by Demographia found that local properties were the 15th-most affordable of any U.S. city with more than 1 million people.
Facing Foreclosure?
Are you in need of Foreclosure Assistance
NeighborWorks/HOPE NOW/Homeownership Preservation Foundation Hotline
Homeowners facing foreclosure can call a tollfree hotline at (888) 995-HOPE, 24 hours a day, 7 days a week.
Federal Housing Administration
Government-insured refinancing for credit-worthy borrowers who went into default after their ARMs reset may be available by calling (800) 225-5342 or by visiting http://www.fha.gov (http://www NULL.fha NULL.gov/).
Other Resources
Avoid Foreclosure Rescue Scams (http://www NULL.ftc NULL.gov/bcp/edu/pubs/consumer/homes/rea11 NULL.shtm)
Federal Trade Commission
Equity Stripping & Loan Flipping – If you agree to a loan that’s based on the equity you have in your home, you may be putting your most valuable asset at risk. Certain abusive or exploitative lenders target borrowers, who unwittingly may be putting their home on the line. These abusive lending practices range from equity stripping and loan flipping to hiding loan terms and packing a loan with extra charges.
Foreclosure Rescue
(https://www NULL.masshousing NULL.com/portal/server NULL.pt?open=514&objID=2563&parentname=CommunityPage&parentid=0&mode=2&in_hi_userid=2&cached=true)MassHousing
Foreclosure Resources for Consumers
(http://www NULL.federalreserve NULL.gov/pubs/foreclosure/default NULL.htm)Federal Reserve Board of Governors
HomeOwnership Preservation Foundation (http://www NULL.995hope NULL.org/)
Found Your Dream Home – What’s Next?
After looking at the comparables for the area a reasonable offer for the home of your dreams is agreed upon and your realtor will submit to the sellers real estate agent. Once submitted, the Sellers agent will come back with an accepted offer, or the negotiations will begin until an agreement is met. With Foreclosures or Short Sales the time frame will be longer. Foreclosures can take up to 60 days from offer acceptance to closing.
Now that the offer is accepted the contract is sent over by your realtor to the Mortgage Broker or Bank and they will start the loan completion process. Up until now you as the buyer have a pre-approval letter. It is your mortgage broker/bankers’ responsiblity to stay on top of getting your loan closed. There will be various documents needed to complete this process. Whatever you do, do not go purchase anything on credit that might change your approval status.
While this is going on there is an option period that you as a buyer can pay a small fee normally $10 a day for 10days. This will give you time to have the home inspected to ensure there is no costly damage, such as foundation or roof repairs needed and to ensure no termite damage.
Once the inspection is done and the loan is approval process is completed the mortgage folks will order an appraisal, and the title company orders the survey,
This process is normally done within a 30 day period unless it is a foreclosure and then it can take longer. Before you go to closing your realtor will receive a HUD statement which breaks down the expenses for closing on the home and will let you know what $$ amount is needed. There are a lot of documents that must be signed so expect the closing to take about 45 minutes.
Heres to wishing you luck on your new home purchase, give me a call I will help you….www.pattimace.com or pattimace@sbcglobal.net (pattimace null@null sbcglobal NULL.net).
Talk again soon,
Patti
FHA & Down Payment Assistance Update..More people can qualify
FHA and Down Payment Assistance Update :
The California Federal Judge has ruled in favor of the Down Payment Assistance Programs. This is definitely Great news especiallay since Hud has been trying to have the Down Payment Assistance programs ruled against by the Federal Judge, however, the Judge has ruled against Hud and for the Down Payment Assistance programs. Hud has now been stopped from ruling against the DPA’s permanently, Safe at last!.
Another issue that is good for buyers and was approved is the FHA Loan amount has now increased to $271,050.00 for Harris and surrounding counties. This will give buyers more options when deciding on which loan option to take FHA, VA, or Conventional.
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