Delaware mortgage rates weekly update for the week of December 12, 2011

Mortgage interest rates have remained at historic levels yet again even though we had some good economic news that boosted the stock market at the end of last week.   We saw the job less claims come in much lower than expected on friday at 381,000.  We also saw consumer sentiment come in at a 6 month high.  Typically this would all have caused Delaware home loan rates to rise but the uncertainy over the debt crisis in Europe has help mortgage bonds maintain and keep Delaware mortgage interest rates at historically low levels.  What does this mean?  IT IS A GREAT TIME to BUY or REFINANCE!!!!

You can apply for a Delaware mortgage loan by calling our office at 302-703-0727 or you can APPLY ONLINE.

John R. Thomas
Certified Mortgage Planner – NMLS 38783
Primary Residential Mortgage
248 E Chestnut Hill Rd
Newark, DE 19713
302-703-0727 Office

HARP 2.0 Refinance Program

Obama Plan Set to Help Underwater Homeowners in Delaware

Unveiled just a few short weeks ago, President’s Obama’s revamped Home Affordable Refinance Program (HARP) is expected to help hundreds of thousands of homeowners nationwide take advantage of today’s low interest rates says Freddie Mac.

The original HARP refinance, started in April 2009, was semi-successful, but had it’s limitations and was needing a re-haul to continue to provide assistance and hopefully a spark to the Delaware economy.

The goal behind the Obama refinance program is clear, allow Delaware homeowners to reduce their monthly mortgage interest rate. These savings will then be, hopefully, plowed back into the local economy which will add jobs and make a dent in the Delaware unemployment rate.  If we can create jobs that will fix the Delaware economy and the Delaware Housing Market.

Which Delaware Homeowners Will Qualify for HARP 2.0 Refinance Loans?

The HARP Refinance is mainly targeted at rewarding homeowners who have been making their payments on time, but can’t qualify for a traditional refinance due to their high loan to value, (the fact that they owe more than 125% of what their property may sell for).

Here are a few of the new HARP Program qualifying guidelines:

• Mortgage Payment History – You must have been ON-TIME with your mortgage payments for the prior 6 months and have had no more than one 30 day late in the past 12 months.
• Minimum Credit Score – Most lenders will require a 620 middle credit score to participate
• Prior HARP Refinances – If you have used the HARP in the past you are not eligible to use it again
• Mortgages with Lender Paid MI – Mortgages that have Lender Paid Mortgage Insurance (LPMI) are ineligible

Short Sale, Refinance or Foreclosure?

Compared to all of the government refinance programs, HARP 2.0 has the potential to work the best at stopping the massive title wave of foreclosures and short sales that are flooding the Delaware real estate markets.

There are many benefits to refinancing and shaving $300 – $1500 off of your monthly mortgage payment, provided you are committed to staying in your home for the next 10, 15, 20 or 30 years.

School Zones, family nearby, area, a home that you’ve invested in…. and the list goes on for reasons why a homeowner would choose to live in a house that is worth less than they owe on the mortgage.

However, if you are not strongly attached to your property, it may be a better idea to consider a short sale now in order to give your credit enough time to heal before property values go back up.  If you are considering a short sale and would like a free consultation from a licensed qualified short sale specialist, then call us for a recommenedatio at 302-703-0727 and ask for John Thomas to get connected to someone who knows your local market.

HARP 2.0 Demand Will Be Strong – Get in the Front of the Line

With the details of the program slowly rolling out and lenders still interpreting and revising guidelines, it will likely be MARCH 2012 before HARP 2.0 refinance loan  applications will be accepted.

Savvy homeowners are not waiting for the official roll-out to get a jump on the savings though. So, how can you get a headstart?

If you are underwater on your mortgage, regardless of whether or not you think you qualify for any of the available options, give us a ring at 302-703-0727 to schedule a strategy session as soon as possible so that we can sit down with you and really explore the best decision that meets your needs.

APPLY NOW  for a HARP 2.0 Refinance

John R. Thomas
Certified Mortgage Planner – NMLS 38783
Primary Residential Mortgage
248 E Chestnut Hill Rd
Newark, DE 19713
302-703-0727 Office

Delaware FHA Loan Limits are changed back to higher limits with Mortgagee Letter 2011-39 announces changes to its mortgage limits with the passing of H.R. 2112 (The Consolidated and Further Continuing Appropriations Act of 2012), which reestablishes the previous higher FHA loan limits.  Effective immediately with all new FHA case numbers until December 31, 2012 the loan limits are as follows:

New Castle County Limit- $420,000

Kent County Limit – $376,250

Sussex County Limit – $375,000

You can apply for a Delaware FHA Loan by calling 302-703-0727 or you can APPLY ONLINE.

John R. Thomas
Certified Mortgage Planner – NMLS 38783
Primary Residential Mortgage
248 E Chestnut Hill Rd
Newark, DE 19713
302-703-0727 Office

Delaware Mortgage Rates Update for the Week of December 5, 2011

Delaware mortage rates have stayed at all time low levels for the past two weeks as the bond market has been held up by a level of support in anticipation of the Federal Reserve starting QE3 in the first quarter of 2012.  QE3 would be the Federal Reserve purchasing mortgage backed securities in the hopes of keeping mortgage rates near historic lows.

I am recommending locking your Delaware mortgage rate if closing in the next 7-10 business days.  If you are closing in the next 30-60 days you can float interest rate.  If you need to apply for a Delaware mortgage loan for the purchase or refinance of a home in Delaware, PA, or Maryland call us at 302-703-0727 or APPLY ONLINE.

John R. Thomas
Certified Mortgage Planner – NMLS 38783
Primary Residential Mortgage
248 E Chestnut Hill Rd
Newark, DE 19713
302-703-0727 Office

Delaware Conventional loan limits for 2012 have been released. Fannie Mae’s loan limits for 2012 for all conventional mortgage loans has been issued by the Federal Housing Finance Agency (FHFA) for all loans to be acquired by Fannie Mae in 2012. These maximum conforming loan limits will remain at existing levels.

First Mortgage Loan Limits for Delaware

New Castle Count, Kent County, and Sussex County

1 Unit $417,000
2 Unit $533,850
3 Unit $645,300
4 Unit $801,950

Second Mortgage Loan Limit is $208,500.

If you need to apply for a Delaware mortgage loan you can call our office at 302-703-0727 or you can APPLY ONLINE.

John R. Thomas
Certified Mortgage Planner – NMLS 38783
Primary Residential Mortgage
248 E Chestnut Hill Rd
Newark, DE 19713
302-703-0727 Office

Delaware mortgage rates weeky update for November 28, 2011.

Here is the video update for Delaware mortgage rates for the week of 11-28-2011:

Delaware Mortgage Rates were able to shrug off the move toward higher rates last week as they rallied today on news that the Federal Reserve might be instituting QE3 with the purchase of 454 Billion in mortgage backed securities (MBS).  Even though stock market rallied over 200 points MBS market rallied back and home loan rates inched back down to the lowest rates in history.  Now is the time to refinance or purchase a home in Delaware.

If you need  to get a great rate for the purchase of a new home or for the refinance of your existing home, call me at 302-703-0727 or you can APPLY ONLINE.

John R. Thomas
Certified Mortgage Planner – NMLS 38783
Primary Residential Mortgage
248 E Chestnut Hill Rd
Newark, DE 19713
302-703-0727 Office

Delaware HARP Refinance Loans for conventional mortgage that are underwater have some positive changes as of October 2011.

In October, President Obama announced plans to open up refinancing to more homeowners who are underwater. This proposal was a revision to the current Home Affordable Refinance Program (HARP).

So what does this mean to you?

This means that if your mortgage is owned or guaranteed by either Freddie Mac or Fannie Mae, you may be eligible to refinance your mortgage under the enhanced and expanded provisions of HARP.

You can determine whether your mortgage is owned by either Freddie Mac or Fannie Mae by checking the following websites:

• http://www.freddiemac.com/mymortgage
• http://www.fanniemae.com/loanlookup/

Fannie Mae and Freddie Mac have recently released details regarding how these changes will be run. If you have any questions at all about what these changes mean or how they could impact you, call me at 302-703-0727 or email me at jthomas@primeres.com anytime. I’m always happy to help.  You can also APPLY ONLINE.

John R. Thomas

Certified Mortgage Planner – NMLS 38783

Primary Residential Mortgage

302-703-0727 Office

248 E Chestnut Hill Rd

Newark, DE 19713

The City of Wilmington has a Homebuyer Assistance Program (HAP) that provides a deferred loan for up to $10,000 to qualified homebuyers to purchase homes in the City of Wilmington Delaware within the 19801, 19802, and 19805 zip codes. You can apply or get more information by calling 302-703-0727.  This is a Delaware down payment assistance program.

Eligible properties are homes that are within the target zip codes that have been vacant for a period of at least 90 days and have not been redeveloped with NSP funds.  Applicants do not have to be first time home buyers but are required to complete 8 hours of home buyer counseling.

Borrowers are free to use any first mortgage program but must get a fixed rate mortgage.  The household income must be equal to or below the limits for the program.  The purchase price cannot exceed HUD limits.  The property must be purchased at a 1% discount based upon appraised value.

Borrower must have ratified sales contract in order to apply for the HAP.

Eligible Income Limitations for HAP Program for 2011-2012

Household size      Maximum Income
1 Person                $67,550
2 Person                $77,200
3 Person                $86,850
4 Person                $96,500
5 Person                $104,200
6 Person                $111,900

PROS:

• No payments, no interest for 5 years then forgiven!
• Can use any first mortgage program and approved lender
• High Income Restrictions
• Not counted in DTI calculations

CONS:

• Must buy in 19801, 19802, or 19805 zip codes
• Must buy vacant property
• Must live in property for next 5 years as primary residence
• Must buy property 1% below appraised value

You can apply for the program or get more information by calling 302-703-0727 or send an e-mail to jthomas@primeres.com.

John R. Thomas
Certified Mortgage Planner NMLS 38783
Primary Residential Mortgage
302-703-0727 Office
248 E Chestnut Hill Rd
Newark, DE 19713