Tuesday 8AM 12/15/09 Free Mortgage Rates Update

Hello, I’m David Beadle. Here’s what’s happening from RateAlertNow.com.

Thirty-year mortgage rates rose for a fourth day in-a-row after considerable consternation about the fact the U.S. Congress is about to hike the National Debt Ceiling to almost $14 trillion. More borrowing by the government causes higher rates for you.

The national-average thirty-year fixed-rate mortgage is now at four-point-seven-five-percent with two-and-three-eighths points, up a quarter point from Friday, for an extra cost of two-hundred-fifty dollars on a one-hundred thousand dollar loan.

The five percent rate is now at three-quarters of one points, up an eighth-of-a-point from Friday, for an extra cost of one-hundred-twenty-five dollars on a “hundred grand” of borrowing.

Remember: one point is worth “one percent” of the loan amount. This means “one point” is one-thousand dollars on a one-hundred- thousand dollar loan…and two-thousand dollars on a two-hundred thousand dollar loan.

When it comes to a two-point loan, that represents two percent of the loan amount. This means “two points” is two-thousand dollars on a one-hundred thousand dollar loan…and four-thousand dollars on a two-hundred thousand dollar loan.

The national-average fifteen-year fixed-rate mortgage was up an eighth of a point, with the four-and-a-quarter-percent rate at one-and-five-eighths points. And the four-and-a-half percent rate is now at a quarter of one-point.

Rates have now risen so much that I’m having to quote you “base rates” which are higher than last week’s “base rates”.

In order for you to know “when” to lock your “floating” fixed-rate
mortgage, you have to have “an Early Warning” system on changes in rates & points +before+ they occur throughout every business day. That’s where my “Rate Alert Now” service becomes essential to your “rate lock” strategy. I’ll tell you via regular e-mail and/or mobile “text messaging” when rates are about to go up, and if you act quickly, you may be able to reach your local mortgage professional by phone to lock your rate +before+ the mortgage company has had time to execute an emergency rate change. The cost of my service is less than one dollar a day.

Today, we will see the wholesale inflation numbers for last month. The estimate is that price pressures at the producer level jumped almost three times as high as they were in October.

That’s what’s happening. I’m David Beadle. For full details on my real-time mortgage rate alert service to help you “beat the system,” visit RateAlertNow.com and check back here later today for my next *free* mortgage rate update.

Monday 5PM 12/14/09 Free Mortgage Rates Update

Hello, I’m David Beadle. Here’s what’s happening from RateAlertNow.com.

Thirty-year mortgage rates rose for a fourth day in-a-row after considerable consternation about the fact the U.S. Congress is about to hike the National Debt Ceiling to almost $14 trillion. More borrowing by the government causes higher rates for you.

The national-average thirty-year fixed-rate mortgage is now at four-point-seven-five-percent with two-and-three-eighths points, up a quarter point from Friday, for an extra cost of two-hundred-fifty dollars on a one-hundred thousand dollar loan.

The five percent rate is now at three-quarters of one points, up an eighth-of-a-point from Friday, for an extra cost of one-hundred-twenty-five dollars on a “hundred grand” of borrowing.

Remember: one point is worth “one percent” of the loan amount. This means “one point” is one-thousand dollars on a one-hundred- thousand dollar loan…and two-thousand dollars on a two-hundred thousand dollar loan.

When it comes to a two-point loan, that represents two percent of the loan amount. This means “two points” is two-thousand dollars on a one-hundred thousand dollar loan…and four-thousand dollars on a two-hundred thousand dollar loan.

The national-average fifteen-year fixed-rate mortgage was up an eighth of a point, with the four-and-a-quarter-percent rate at one-and-five-eighths points. And the four-and-a-half percent rate is now at a quarter of one-point.

Rates have now risen so much that I’m having to quote you “base rates” which are higher than last week’s “base rates”.

In order for you to know “when” to lock your “floating” fixed-rate
mortgage, you have to have “an Early Warning” system on changes in rates & points +before+ they occur throughout every business day. That’s where my “Rate Alert Now” service becomes essential to your “rate lock” strategy. I’ll tell you via regular e-mail and/or mobile “text messaging” when rates are about to go up, and if you act quickly, you may be able to reach your local mortgage professional by phone to lock your rate +before+ the mortgage company has had time to execute an emergency rate change. The cost of my service is less than one dollar a day.

On Tuesday, we will see the wholesale inflation numbers for last month. The estimate is that price pressures at the producer level jumped almost three times as high as they were in October.

That’s what’s happening. I’m David Beadle. For full details on my real-time mortgage rate alert service to help you “beat the system,” visit RateAlertNow.com and check back here on Tuesday morning for my next *free* mortgage rate update.

CONGRESS EXTENDS AND EXPANDS THE
$8,000 FIRST-TIME HOMEBUYER TAX CREDIT

Amendment Includes $6,500 Credit for Current Homeowners‡

On November 5th, the U.S. Congress completed action on legislation to extend the existing homebuyer tax credit and expand
eligibility for certain existing homeowners. President Barack Obama signed this legislation into law on November 6th.

• The current $8,000 federal tax credit for first-time homebuyers is extended to April 30, 2010.
• A new tax credit for certain existing homeowners has been created. The amount of the new credit is $6,500. To qualify, an individual must have owned and resided in a home for any 5-consecutive year period during the last 8 years prior to purchase of a new home.
• To be eligible to claim the $8,000 credit, first-time buyers must enter into a written binding contract for purchase before May 1, 2010 and must close on the purchase before July 1, 2010.
• To be eligible to claim the $6,500 credit buyers who have owned and resided in a home for any 5-consecutive year period during the last 8 years, must close after the date of enactment (November 6, 2009), and prior to July 1, 2010.
• The new law increases the income limitation for homebuyers who want to claim the credit. The income limit for individual taxpayers has been increased from $75,000 to $125,000. The income limit for joint filers increases from $150,000 to $225,000.

• To qualify for either credit, the price of the home being purchased cannot exceed $800,000.

Carryover Provisions

Certain important provisions from the original tax credit remain in place. To qualify for the credit, a homebuyer must be a U.S. citizen or have permanent resident status. The income limits are calculated based on a taxpayer’s modified adjusted gross income. Homebuyers retain the option to claim the credit in the previous tax year. If a homebuyer claims the credit and sells their home within three years, the credit is subject to recapture.

For More information go to: www.federalhousingtaxcredit.com

We are not surprised the U.S. Congress has passed a resolution extending through 2010 the current conforming loan limits for Fannie Mae, Freddie Mac and FHA, of $417,000 for most areas in the U.S.

This is needed to keep the real estate industry moving along, especially in California. 

That higher conforming loan limit would be $729,750 for high-cost areas, including many in California.

President Obama is expected to sign the resolution with other budgetary legislation.

The CALIFORNIA ASSOCIATION OF REALTORS® (C.A.R.) and the NATIONAL ASSOCIATION OF REALTORS® (NAR) have worked and advocated to make permanent the higher conforming loan limits.

As a result of C.A.R.’s and NAR’s efforts, a provision of the Housing and Economic Recovery Act of 2008 included temporarily raising the conforming loan limits from $625,500 in high-cost areas to $729,750 and extending the limits through 2009.  This resolution extends the higher conforming loan limits for Fannie, Freddie, and FHA loans through 2010.

These higher conforming loan limits have and first time homebuyer tax credit have helped stabilize California’s housing market and economy during the past year.

The conforming loan limit determines the maximum size of a mortgage that Government Sponsored Enterprises (GSEs) Fannie Mae and Freddie Mac can buy or “guarantee.”  

Non-conforming or “jumbo loans” typically carry higher mortgage interest rates than conforming loans, increasing monthly payments and hampering the ability of families in California to purchase homes by making them less affordable.

Source:  Conforming Loan Limits to be Extended to 2010 (click here to see article at California Assoc. of Realtors).

Harrison K. Long, Explore Group, Coldwell Banker Previews, Irvine, CA.  DRE 01410855.  ExploreProperties@gmail.com.