Philadelphia 
Inquirer columnist Al Heavens discusses the importance of comparing multiple lenders when looking for a mortgage. My clients, Joe and Laura Cipko who settled on their new townhouse in November, are interviewed and quoted in the article concerning their mortgage selection process. Congratulations Joe and Laura! Take a look at the Sunday December 19 Inquirer article which appears in the Business Section.
The Mortgage Corner
I would like to introduce a guest post today from Steve Madonna, who is the Weichert Financial representative in the Weichert Media office. Steve will post from time to time in the Mortgage Corner category. I welcome Steve and his insights on today’s mortgage market.
Rates have crept up a little this week. 30 yr fixed mortgages are in the 4.875 – 5% range . That is still very good . There is a lot of volatility in the market right now. It sounds crazy, but the interest rate for a buyer of a house in Topeka, Kansas is affected by the debts of France & Italy. It is a global world indeed !
First time buyers. You are in the driver’s seat. You have nothing to sell and will find plenty of housing choices in the Delaware Valley. Many sellers will pay a percentage of your closing costs. The Pennsylvania Housing Finance Agency (PHFA) is offering 3.75% with 0 points for a 30 yr fixed rate loan today. There are some restrictions on the program, but many people are jumping on that offer. I am finding that borrowers who can scrape together some money will be paying almost the same to own as they were in rent ! This program allows you to put down as little as 3% of the purchase price. I have also found also that most renters have no idea about the tax deductions given to homeowners. There are many reasons to seek out a reputable realtor this winter. Have a mortgage question ??? Give me a call! – Steve Madonna
610 566-2045
Credit Score Requirements Stifling Borrowers
Despite record-low interest rates, an increasing number of Americans can’t afford to buy a house.
The nation’s two largest mortgage lenders, Wells Fargo & Co. and Bank of America Corp., have raised the minimum required credit score on FHA-insured loans to 640 from 620
Requiring a 640 credit score excludes about 15 percent of FHA borrowers, according to FHA commissioner David Stevens.
Mortgage Rates On The Rise
Rates for 30-year fixed mortgages rose to 4.39 percent this week from 4.17 percent a week ago, and average interest on 15-year loans moved to 3.76 percent from 3.57 percent, said Freddie Mac.
Interest for five-year adjustable-rate mortgages jumped to 3.4 percent from 3.25 percent, meanwhile, and one-year ARMs held at 3.26 percent. Rates have climbed along with long-term Treasury yields as traders unloaded Treasurys purchased before the Federal Reserve announced a $600 billion bond purchase program.
Good News For 1st Time Buyers
The Pennsylvania Housing Finance Agency – PHFA – is offering 1st time home buyers mortgage loans at 3.75% with 0 points for existing homes, and 3.25% for new construction. In spite of all the negative news surrounding the housing industry this program offers 1st time buyers a great opportunity. The maximum purchase price of the home is set at $320,000.
Income limits are set at $77,800 for a 1 or 2 member household and $89,400 for a household of 3 or more members. Conventional loans with 3% down are available for customers with a FICO score of 660 or greater.
If you are a first time home buyer still renting and undecided about purchasing a home this should be the motivation to take action.
