Home prices up sharp- Int rates stay low

Mortgage rates held at record lows this week as fresh data showed home prices in the nation’s largest cities rose sharply from May to June. In other industry related news, 25% of banks reported tightening lending standards for would-be mortgage holders in the last few months. In order to avoid hiccups and closing delays, prospective buyers should submit all their documentation to a reputable and experienced lender well in advance of beginning their home search.

Please note we have special rates for our purchase customers, please call for rates on refinances.

Here are our weekend rates for purchase loans for borrowers with credit scores over 740 and at least 20% down:

Conf 30 year fixed to $417,000: 3.5%
Conf 30 year fixed ($417,000-$535,900): 3.5%

FHA 30 year fixed: 3.25%

FHA 5/1 ARM: 2.25%

Jumbo 30 year fixed ($528,750+): 3.75%

All rates except FHA reflect 1 origination, 0 discount points. Please note rates do vary by credit score, loan amount, rate lock period, occupancy and loan to value.

Emily Scarborough
Prosperity mortgage

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When is a good time to close

Mortgage Myth #1: It is best to close my transaction at the end of the month.
Mortgage Realty # 1: Save Your clients time and money with an interest credit!

Many agents & buyers believe it is best to settle at the end of the month in order to save money on pre paid interest.

As you know, the lender charges interest at closing from the day you close until the end of the month. Because of this, the later in the month you close, the less money you would come out of pocket with.

However, at Prosperity Mortgage, we offer the buyer an interest credit if they settle earlier in the month. This will allow the buyer to bring LESS cash to close and not have to worry about squeezing in between 10 other settlements on the last day of the month. It will allow agents to avoid the last minute delays and backlogs that are sometimes associated with end of month lender clogged pipelines and allow you to offer an extraordinary customer experience every time. Here’s how it works:

Settlement Date: 7/3/2012

Most lenders will collect 29 days of interest at closing through 7/31/2012 with the First Mortgage payment being due 9/1/2012.

Prosperity Mortgage customers can choose a first payment on 8/1/2012 and actually receive a credit for 2 days of interest (July 1st and 2nd) at closing. This enables the customer to come out of pocket with less money spreading these costs out over the first month of home ownership rather than upfront. This can be a life saver for cash strapped clients or those not wanting to deal with an end of month closing.

Prosperity can offer an interest credit on conventional loans if the loan funds on or before the 10th of the month. Talk to your Prosperity Mortgage Consultant for more details.

Rates continue to fall

Mortgage rates once again hit record lows this week according to data from Freddie Mac. That marks the third straight week of record lows. Despite positive economic news here in the US that industrial production was up and consumer sentiment hit its highest level scince 2008, the Treasury bond market continued to show strength. The turmoil in Europe continued to overshadow positive data at home. The low interest rates are encouraging demand and applications for mortgages were up 9.2% last week.
**Please note: During this busy season it is imperative that we take the time to have our clients pre-approved before going out to look at properties. This will make things easier for all parties.
**Please see below for purchase loan rates on single-family homes greater than $150,000 with 20% down and 740+ credit scores.

Conf 30 year fixed to $417,000: 3.6255%
Conf 15 year fixed: 2.75%
Conf 30 year fixed ($417,000-$535,900): 3.875%
FHA 30 year fixed: 3.75%
FHA 5/1 ARM: 2.75%
Jumbo 30 year fixed ($528,750+): 4.0%
All rates except FHA reflect 1 origination, 0 discount points. Please note rates do vary by credit score, loan amount, rate lock period, occupancy and loan to value.

Virginia home sales surge ahead (+9%) in February 2012
Posted: 23 Mar 2012 07:11 AM PDT\

 

 

 

 

 

 

In another sign of potential stabilization of the housing market in Virginia, home sales rose 8.6% in February 2012 as compared to one year prior.  This strong increase is after a 2.7% year-over-year increase in January 2012.  Virginia’s unemployment rate of 5.8% in January is the lowest level seen since December 2008 and provides a strong climate for growth in the housing market.

Download the full February 2012 Virginia Home Sales Report below which also highlights:

  • Monthly median sales prices only declined 0.9% in the past year.
  • Monthly sales volume increased 8.4% between February 2011 and February 2012.
  • Average days on market stayed level at 105 days in February 2012.

February 2012 Virgina Home Sales Report

 

Rates are still low – below 4%

Mortgage giant Freddie Mac reported that the average rate for a 30 year fixed rate loan fell to 3.87% this week amid positive economic news. The unemployment rate hit it’s lowest level in three years and the Dow broke through to its highest close since May 2008. Refinance applications have surged on the lower rates, although some homeowners are waiting to see if rates will go lower. Most economists predict that with the economy improving, the odds are better that rates will tick a bit higher in the coming months..

Here are current rates for purchase loans on single-family homes greater than $150,000 with 20% down and 740+ credit scores.

Conf 30 year fixed to $417,000: 3.875%
Conf 15 year fixed: 3.125%
Conf 30 year fixed ($417,000-$535,900): 3.875%
FHA 30 year fixed: 3.75%
FHA 5/1 ARM: 2.75%
Jumbo 30 year fixed ($528,750+): 4.0%

All rates reflect 1 origination, 0 discount points. Please note rates do vary by credit score, loan amount, rate lock period, occupancy and loan to value.
From
Emily Scarborough
Home Mortgage Consultant
Prosperity Mortgage Company
MAC M8615-011
5702 Grove Ave
Richmond, VA 23226
804-285-4216 Tel
804-281-7846 Fax
1-888-664-7683 Toll Free
emily.scarborough@prosperitymortgage.com
http://www.emilyscarboroughforloans.com

Mortgage Rates hold near record lows….Sales of homes are up

Mortgage rates  held near record lows this week, with Freddie Mac reporting the average 30 year fixed rate at 4.0%. Rates have been below 5 percent for all but two weeks in the past year. Just five years ago they were closer to 6.5 percent. Ten years ago, they were above 8 percent.

Here are current rates for purchase loans on single-family homes greater than $150,000 with 20% down and 740+ credit scores . Please call for rates on refinances.

Conf 30 year fixed to $417,000: 4.0%
Conf 15 year fixed: 3.25%
Conf 30 year fixed ($417,000-$535,900):  4.0%
FHA 30 year fixed:  3.75%
FHA 5/1 ARM:  2.75%
Jumbo 30 year fixed ($528,750+): 4.25%

All rates reflect 1 origination, 0 discount points. Please note rates do vary by credit score, loan amount, rate lock period, occupancy and loan to value.

The Federal Reserve sought to calm markets

Mortgage rates fell this week as stocks took a roller coaster ride, surging and falling hundreds of points throughout the week. The Federal Reserve sought to calm markets and indicated it will keep short term rates unchanged through mid-2013. Freddie Mac reported the 30 year mortgage rate averaged 4.32% , the lowest point of the year  and the 15 year averaged  an all time low of 3.5%.

In other mortgage related news, buyers and those thinking of refinancing should keep in mind Congress has not extended the temporary loan limits enacted in 2008. In the Richmond area, this provides much more favorable rates and qualifying criteria for loans between $417,000 and $535,900. These limits are set to expire on September 30th – which means buyers should lock in now in order to close before the expiration date.

Here are current rates for purchase loans on single-family homes greater than $150,000 with 20% down and 740+ credit scores . Please call for rates on refinances.

Conf 30 year fixed to $417,000: 4.125%
Conf 15 year fixed: 3.25%
Conf 30 year fixed ($417,000-$535,900):  4.25%
FHA 30 year fixed: 4.125%
FHA 5/1 ARM: 3.25%
Jumbo 30 year fixed ($528,750+):   4.625%

All rates reflect 1 origination, 0 discount points. Please note rates do vary by credit score, loan amount,  rate lock period, occupancy and loan to value.

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