Category Archives: Mortgage

Short Sale Guidelines

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The Obama Administration set guidelines for financially troubled borrowers to sell their homes last week.  The government created these guidelines to encourage the use of short sales. 

 

To put it simply using a definition from the Wall Street Journal, a short sale is a transactions in which the borrower with lender approval sells the home for less than what is owed on the loan. Short Sales are often less damaging to a neighborhood’s property values than a foreclosure would be.  The program makes it easier for borrowers to voluntarily transfer ownership of properties through a “deed in lieu” of foreclosure. 

 

This plan will award borrowers $1500 from the government if they sell their home for less than they owe on it.  This is the newest addition to Obama’s $75 billion foreclosure prevention plan. 

 

Call 252-261-3800 or email sales@seasiderealty.com to speak with a short sales specialist.

Low Mortgage Rates Helping Stabilize Housing Market

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house-with-money-inside1Freddie Mac has recently released the results of the Primary Mortgage Survey that shows the 30-year fixed mortgage average at 5.14%.  At this time last year, the 30 year fixed mortgage averaged 6.4%.  The 15-year mortgage average for this week averaged 4.58%, and last year the 15-year was at 5.93%.  Five year adjustable rate mortgage averaged 4.67%, which has also been steadily decreasing.

 

“Long-term mortgage rates were barely changed this week, remaining historically low, which is helping to sustain a high level of affordability in the home-purchase market,” said Frank Nothaft, Freddie Mac vice president and chief economist.  

 

Low rates contributed to existing home sales rising for the fourth consecutive month to an annual pace of 5.24 million in July, the most since August 2007, according to the National Association of Realtors®.  Similarly, new home sales rose for the fourth month in a row to 0.4 million, the strongest pace since September 2008, the Commerce Department reported.  The sales gain helped to reduce the number of new unsold houses on the market to the lowest amount since March 1993.  In addition, house prices in June rose nationally for the second consecutive month, according to the Federal Housing Finance Agency’s purchase-only house price index.

Mortgage Rates Drop for Second Straight Week

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As of July 1, the weekly average rate borrowers were quoted on Zillow Mortgage Marketplace for 30-year fixed mortgages decreased last week to 5.48%, down from 5.58% the week prior, according to the Zillow Mortgage Rate Monitor, compiled by real estate website Zillow.com®. Meanwhile, rates for 15-year fixed mortgages fell to 4.87% from 5.01%, and 5-1 adjustable rate mortgages also fell to 4.65%, down from 4.73 the week prior.

Mortgage Type          Average Rate                           Average Rate
                               Week ending 6/29/09        Week ending 6/21/09          % Change
30-year fixed                 5.48%                                   5.58%                             -1.8%
15-year fixed                 4.87%                                   5.01%                             -2.8%
5-1 ARM                        4.65%                                    4.73%                             -1.7%

As of June 29, rates for 30-year fixed purchase mortgages dropped further, with the average rate on Zillow Mortgage Marketplace at 5.34%.

Thirty-year fixed mortgage rates varied by state. Missouri mortgage rates, Virginia mortgage rates and California mortgage rates decreased the most, from 5.61% to 5.48% in Missouri, from 5.57 to 5.45 in Virginia and from 5.57% to 5.45% in California. Illinois mortgage rates and Massachusetts mortgage rates were the highest, each at 5.57%. Georgia mortgage rates were the lowest, at 5.42%.

State                           Average 30-yr.                   Average 30-yr.
                                      Fixed Rate                          Fixed Rate
                             Week ending 6/29/09           Week ending 6/21/09         % Change
Arizona                         5.48%                                   5.58%                              -1.8%
California                      5.45%                                   5.57%                              -2.2%
Colorado                       5.45%                                   5.55%                             -1.8%
Connecticut                   5.47%                                   5.59%                             -2.1%
Florida                          5.44%                                    5.50%                             -1.1%
Georgia                         5.42%                                    5.52%                             -1.8%
Illinois                           5.57%                                   5.64%                             -1.2%
Maryland                       5.52%                                   5.61%                             -1.6%
Massachusetts              5.57%                                    5.68%                            -1.9%
Michigan                       5.50%                                    5.57%                            -1.3%
Missouri                       5.48%                                    5.61%                            -2.3%
New Jersey                   5.49%                                    5.59%                            -1.8%
New York                     5.54%                                    5.62%                            -1.4%
North Carolina             5.50%                                    5.60%                            -1.8%
Ohio                             5.56%                                    5.64%                            -1.4%
Oregon                         5.50%                                   5.58%                             -1.4%
Pennsylvania                 5.47%                                  5.56%                             -1.6%
Texas                            5.45%                                  5.55%                            -1.8%
Virginia                         5.45%                                  5.57%                             -2.2%
Washington                   5.46%                                  5.53%                             -1.3%

The Zillow Mortgage Rate Monitor is compiled each week using thousands of mortgage rates for conforming loans quoted on Zillow Mortgage Marketplace by mortgage lenders to borrowers who have submitted loan requests. State-level data is gathered for the top 20 states with the highest quote volume on Zillow.

For more information, visit www.zillow.com/Mortgage_Rates/.