Why Now is the Perfect Time to Buy a House ...

Why Now is the Perfect Time to Buy a House With home prices rising for the third straight quarter, it is pretty hard to argue that the housing market recovery hasn't picked up steam. In fact, according to S&P Case-Shiller, home values increased 7.3% in the last quarter of 2012 alone. That means we are seeing the bounce from the home value bottom. Combined with mortgage rates with a national average in the 3% range, and you have the perfect storm for the best time to buy a home. But there is a problem - as the recovery continues, affordability will fall. Home values will continue to stabilize and improve, and mortgage rates are going to rise. Contrary to what the press would have you believe and what many people now think, the government doesn't control mortgage interest rates. While the Fed has been able to manipulate and affect mortgage rates with things like quantitative easing, it is not the same as control. The housing market is recovering as part of the US economy as a whole, and with that recovery is a natural increase in mortgage rates. That means that even as house prices rise, so will mortgage interest rates, providing a double whammy to buying power. YEAR-OVER-YEAR CHANGE IN HOME VALUES; SOURCE: S&P CASE-SHILLER Last Week's Mortgage Rates Recap Last week we ended the week with slightly better mortgage rates than we started, and improved rebate pricing. However as we warned, there was lots of intraday volatility - mortgage rates and pricing fluctuated throughout the day. We saw swings of as much as .500 in rebate in a day, which on a $200,000 loan is $1,000. We ended the week with risks greatly favoring locking in interest rates. Most of this market movement was created due to the ongoing concerns in Cyprus as well as the positive bias that continued in the stock market regardless of that concern. This Week's Mortgage Rates Forecast Risks Favor: LOCKING As most of last week focused on Cyprus, it helped to keep mortgage rates stable and even to improve slightly. However, in the early hours of the morning this AM European Union leaders agreed on a bailout package intended to keep Cyprus in the euro zone and rebuild its devastated economy. That bodes poorly for mortgage interest rates, as there is no reason to see a flight to safety to bonds. Also, as shown in the chart above, the technical indicators on the MBS (mortgage backed securities) market also point to rate weakness. This week for any consumers who are less than 30 days from closing, we advise to lock. This week already appears to be one of a rising interest rate environment, and along with a number of key economic reports and a holiday week, volatility is a given. BOTTOM LINE: Lock in these low rates and don't look back.                                           RateAlert’s Most Trusted Mortgage Loan Officers MLOs that subscribe to RateAlert’s Executive service have the training and market knowledge, along with the data at their fingertips, to expertly help you navigate the difficult and sometimes treacherous process of obtaining home financing and securing some of the best rates the market has to offer. If you would like to learn more about how to time the market to obtain the best interest rates, don’t hesitate to contact the MLO who sent you this commentary.

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Robert F. Rosenbaum, Jr. 
The Rosenbaum Lending Group
1st Portfolio Lending Corp.
8300 Boone Blvd., Ste 200
Vienna, VA 22182
(703) 879-5200  Office
(703) 608-1110  Cellular
(703) 891-9815  Direct Fax
RRosenbaum@FirstPortfolio.com
www.MyTalentedLender.com  
NMLS License: 649782
Notary Public

Market Update and Rates

Today's Rates - 
3.625%  No Points  30 Year Fixed Conventional
2.625%  No Points  5 Year ARM Conventional
2.750%  No Points  7 Year ARM Conventional
3.250%  1 Point Lender Credit  30 Year Fixed FHA
3.250%  1 Point Lender Credit  30 Year Fixed VA
2.500%  No Points 5 Year ARM FHA

Conventional Assumptions:  $400,000 loan amount, 20% Equity, 740 Credit Score
FHA Assumptions:  $400,000 loan amount, 3.5% Equity, 740 Credit Score
VA Assumptions: $400,000 loan amount, 0% Equity, 740 Credit Score

It's still a great time to buy of refinance.  If you have an FHA loan, call me to refinance into a conventional loan with as little as 5% equity and no mortgage insurance!  

Equal Housing Lender  |  This is not an offer of credit  |  Not all borrowers will qualify

Apply Online Today - Click HERE for our secure application. 


Robert F. Rosenbaum, Jr.
The Rosenbaum Lending Group
1st Portfolio Lending Corp.
8300 Boone Blvd., Ste 200
Vienna, VA 22182
(703) 879-5200  Office
(703) 608-1110  Cellular
(703) 891-9815  Direct Fax
RRosenbaum@FirstPortfolio.com
http://www.MyTalentedLender.com 
NMLS License: 649782
Notary Public

How are you affected by rising interest rates?

This is a major concern to most of my clients.  Interest rates have a direct effect on the amount of money you will qualify to borrow.  As rates go up - your housing affordability goes DOWN. 

The chart below makes the following assumptions:
Salary of $75,000 per year
No other debts 
Property taxes of $4,500 per year
Hazard insurance of $900 per year
No homeowner's association fees

At 3% this person could theoretically qualify for a mortgage of around $430,000.  At 8% the very same person would only qualify for $247,000.  

We have all become very used to these unusually low interest rates - but it was not all that long ago when we were all excited to be below 6%.  The average interest rate in 2008 was 6.5%, in 2009 rates dropped into the 5%'s, 2010 saw rates dip into the 4%'s, and 2011 remarkably brought us the lowest rates since WWII.  

I remember 1997 and my first mortgage at 8.625%.  

Mortgage rates are being kept artificially low by our Federal Government - but even the powerful United States Government cannot stave off inflation forever.  We will see rates at 8% again, the question is ... What will you do?  

Will you have already purchased your home and secured a low fixed interest rate?  

Or will you be buying half the home you need because it's all you can afford?  

If you are ready to consider buying your first home, or your dream home, contact us to find out how much you qualify for.  We can also provide referrals to the best Realtors and other service providers you may need.

Thanks for reading - please consider leaving a comment below.

Robert F. Rosenbaum, Jr.
The Rosenbaum Lending Group
1st Portfolio Lending Corp.
8300 Boone Blvd., Ste 200
Vienna, VA 22182
(703) 879-5200  Office
(703) 608-1110  Cellular
(703) 891-9815  Direct Fax
RRosenbaum@FirstPortfolio.com
http://www.MyTalentedLender.com 
NMLS License: 649782
Notary Public

 

Market Alert ...

 

Last Week's Mortage Rates Recap Last week displayed the volatility we warned about, and ended on a terrible day. The market losses we saw occur on Friday marked a new point in technical indicators for mortgage rates, and saw mortgage rates reprice for the worse on Friday for about .125% higher. We were able to warn most of our consumers early on, as we monitor the market in real time and can act quickly when the trend starts. This Week's Mortgage Rates Forecast Risks Favor: LOCKING This week the risks still favor locking, as we see a new baseline for technical indicators that rates will continue to get worse (rates will go up or rebate will be lost). Economic data on the calendar will cause lots of movement, with lots of data including the FOMC policy statement on Wednesday that will be a market mover. Consumers who choose to try and wait it out, trying to achieve the best rates that we have seen in the past, will likely pay for that mistake. All technical indicators point to locking in interest rates before we see continued rate erosion. How we end the week will be especially important. Again, we must emphasize that consumers need to see the risks for trying to obtain better rates are much higher than the potential rewards they may see. All technical and fundamental indicators point to locking in rates as soon as possible until we see a reversal.                                        RateAlert’s Most Trusted Mortgage Loan Officers MLOs that subscribe to RateAlert’s Executive service have the training and market knowledge, along with the data at their fingertips, to expertly help you navigate the difficult and sometimes treacherous process of obtaining home financing and securing some of the best rates the market has to offer. If you would like to learn more about how to time the market to obtain the best interest rates, don’t hesitate to contact the MLO who sent you this commentary.

To unsubscribe from TBWS Rate Alert e-mails, please click here. Please do not reply directly to this e-mail. TBWS Rate Alert will not receive any reply message. For questions or comments, visit our Forums or Contact Support via SupportTeam@ratealert.com.

 

Verification of Funds – The Hot Button Issue of 2013

Verification of Funds – The Hot Button Issue of 2013

Funds verification requirements can be very frustrating for borrowers applying for mortgage loans today.  Here are some tips to help you prepare and avoid frustration … These tips apply to any account that you will provide to your loan officer as part of your application.

1. Start planning 30 to 60 days before you apply (we will require your last 2 month’s bank/brokerage statements).  
2. Any deposits to your account that are not “Direct” deposits for payroll, social security, retirement, etc. will need to be verified*.
3. Funds transfers – if you transfer funds from Account A into Account B (and Account B is provided to the lender), you will have to provide a statement from Account A showing the funds transfer and a 30 day history.  If there are deposits showing in Account A they will need to be verified*.  
4. Earnest Money Deposits (EMD) Purchase loans – Your EMD must be verified prior to closing – you will be required to provide a copy of the cancelled check (front and back) along with a 30 day statement showing the check clearing your account. 

* Verified means – a copy of the check (front and back) with a written explanation of what it represents.

Working with the right Loan Officer, who understands these guidelines, can make all the difference in creating a smooth transaction.  

Have You Heard of Dropbox?

Have You Heard of Dropbox?

2013 VA Loan Limits

Good News - The 2013 VA Loan Limit for 100% financing in the DC MSA will be $843,750. 

If you are an eligible Veteran - you could buy a home for $843,750 with ZERO out of pocket.

VA also does not have an actual loan limit.  If you want to buy a home that's $1M - you can still use your VA Loan.  You would have to put down 25% of the difference between $843,750 and $1M ($1,000,000 - $843,750 = $156,250 x 25% = $39,062.50).

If you have a disability for which you receive VA Disability Benefits, your VA Funding Fee may be waived.

Some features of the VA Loan include:
Lower interest rates than Conventional financing.
No monthly mortgage insurance.
Low or no down payment required.
Cash-out refinances up to 90% of the value of your home.

If you would like more information on VA Loans, please call or shoot us an email.

Thanks!

** This is not an offer of credit.  Not all applicants will qualify.  Rates are subject to change at any time.  Equal Housing Lender. **

Robert F. Rosenbaum, Jr. 
The Rosenbaum Lending Group
1st Portfolio Lending Corp.
8300 Boone Blvd., Ste 200

Vienna, VA 22182
(703) 879-5200  Office
(703) 608-1110  Cellular
(703) 891-9815  Direct Fax
RRosenbaum@FirstPortfolio.com
http://www.MyTalentedLender.com
NMLS License: 649782
Notary Public

Please click HERE for our secure online application. 

It’s a good life!