Real Estate Information Archive

Need A Mortgage?

Friday, February 20, 2009

by Cathy Watkins

There are five things to think about when you need a mortgage!

Your down payment is important. A ten percent down will make your mortgage one that Fannie Mae and Freddie Mac will purchase.
What's the score? Do you want the best interest rates? Then you need a credit score of 720 or better! The lower your score, the greater you interest rate.
Government Insured? Check out government insured loans like FHA or VA. Do this especially if you have less than great credit scores.
Get it together! Lenders now need lots of proof that you can do what you have represented to them. Have tax, income, checking, and savings information ready.
Pay Up! Reduce all debt so that your mortgage payment is less than 43% of your gross income.

Rates are great and there are homes a plenty! Call me for more information on mortgages or homes.

Lower Mortgage Rates ? !

Thursday, September 11, 2008

by Cathy Watkins

This past weekend, the U.S. Department of Treasury placed Fannie Mae and Freddie Mac -- Government Sponsored Enterprises (GSEs) – into a government conservatorship, taking over day-to-day management of the two agencies.

The GSEs are critical to the overall housing market and more specifically, the mortgage industry. Together, they own or guarantee approximately $5.2 trillion in mortgage loans – about half of the nation’s total. Their role is critical to the housing industry.

Fannie and Freddie also play a significant role in the investor community since many individuals, companies and foreign investors own mortgage back securities issued by the GSEs. Government backing restores confidence and ensures that global financial markets will continue to provide market liquidity, which could expedite stabilization in the credit and housing markets.

SO WHAT DOES THIS MEAN FOR A HOME OWNER OR A HOME BUYER?

Many experts believe this takeover will lead to lower mortgage rates … Great news for homebuyers, sellers and those hoping to refinance. A Fannie Mae or Freddie Mac loan will now be guaranteed by the U.S. Government. This removes the risk of default and takes away the need to increase rates to offset risk.

Lower rates will not only attract more homebuyers into the market but will also help to stabilize home prices.

Now is the time to move forward with your plans to sell and/or purchase a new home. Make sure that you are in contact with your realtor to make sure that you have your current home ready to move quickly and are aware of new homes coming on the market. Also, remember your loan officer so that you are kept up to date on how rates are moving day to day.

These are exciting times!

Heather A Larson
Loan Officer
Chase Home Finance

loan lower mortgage rates stabilization Fannie Mae Freddie Mac real estate purchase real estate sale mortgage loans investor confidence

Better than a price reduction? This might work for you!

Wednesday, August 20, 2008

by Cathy Watkins

A % reduction on the list price of a home might not encourage any additional activity on the home but the same money spent might attract lots of buyers if it is applied to an interest rate buy-down. Of the five marketing factors that affect the sale of a home, most agents concentrate on price. While that will certainly cure a lot of what ails a listing, terms for the buyer is another alternative.

I have asked Heather Larson, a loan officer with Chase Home Mortgage, to give examples of how this can work for the benefit of both buyer and seller! Her answer is as follows:

Example 1:

Buyers to do a FHA loan, sellers can give up to 6% or $15,000. Enough funds to do a 3 year buydown. So for the first year the buyers rate would be 3 points below the fixed note rate, 2nd year - 2 points below, 3rd year - 1 point below and then the 4th - 30th year the full fixed rate of 6.625%

Example 2:

Buyers to do a conventional loan, sellers can give up to 3% or $7500.00. Enough funds to do a 2 year buydown.

Questions? Please contact me or Heather Larson.
We will be glad to help in any way we can.

Heather's contact information is:

Heather A Larson
Loan Officer
Chase Home Finance

541-434-3908 direct
541-982-2297 E-fax
541-687-1194 fax
877-681-4040 ext. 208 toll free

Apply on line at:
www.heatheralarson.com