buyers

Low Interest Rates = Great time to Buy

Interest rates remain low!   As of today - conforming loans (under $417k) remain at 4.375%.  FHA rates remain at 4.5%.  And jumbo rates for qualified buyers remain as low as 5.5% with equity and excellent credit.

I ran some numbers to see what kind of savings you would have with these low rates.  WOW – over the life of the loan you can save tens of thousands of dollars.  On a loan amount of $200,000 - the monthly mortgage payments on a 30 year fixed (does not include taxes, insurance) are:

Interest Rate		Monthly Payment		Monthly Savings compared to $998.57
4.375%		$998.57		not applicable
5.375%		$1,119.84		$121.27
6.375%		$1,247.75		$249.18

Aside from the monthly savings – an interest rate of 4.375% vs. 5.375% could save you $43,693.91 over the life of the loan.  And an interest rate of 4.375% vs. 6.375% could save you $89,700.94.  WOW.

FMLS Intown Areas

FMLS Area Codes for Intown

FMLS Area	Neighborhoods
21	Buckhead neighborhoods including Chastain Park
23	Midtown, Morningside, Virginia Highland, Inman Park, Piedmont Heights
24	Druid Hills, Candler Park, Lake Claire, Kirkwood, Edgewood, East Atlanta, East Lake, Oakhurst
31	Capitol View Manor, Sylvan Hills, College Park, Adair Park, West End, Jefferson Park
32	Grant Park, Ormewood Park, Glenwood Park
52	Decatur, Clairemont, Toco Hills, Oakhurst, East Lake, Kirkwood

If you don’t see your neighborhood ~ let me know.  Some neighborhoods may appear in 2 different areas.

FHA Loans

FHA loans have been around since 1934 but in previous years we haven’t needed them with all of the other financing options available.  With the recent tightening of credit terms, FHA loans are back and can be a great option for buyers who might not otherwise be able to purchase a home.  FHA  stands for Federal Housing Administration.  FHA doesn’t actually lend the money but insures the loan for your lender.   There are caps on the amount of an FHA loan and it is based on the lending area.  In Metro Atlanta – the loan limit is $346,250.   The loan limit does change from time to time and it can be higher in more expensive markets and less in lower priced markets.  As of today - the FHA rate was VERY competitive – 4.5% for a year 30 year fixed compared to 4.375% for a non-FHA loan.  

Advantages of FHA loans:

• Down payment as little as 3.5% of the sales price.  Most conforming loan programs require a minimum of 5% down.
• Lower credit scores for buyers.  600 minimum
• Easy qualifying guidelines. Gift/Grant funds may be allowed for down payments.
• Non-occupying co-borrowers allowed.  Perfect for a buyer just starting out in the job market and who may not yet have established credit.  A parent can co-sign the loan and not have to live in the property!
• Seller Contributions can be up to 6% of the sales price.  Helps a buyer who is short on cash as a seller can contribute towards closing costs &  pre-paids (interest, property taxes) also called escrows.
• Has a fixer- up loan program.  Great option for some of the homes presently on the market.
• You may even be able to include energy improvements into an FHA-Efficient Mortgage

FHA loans aren’t for everyone but a great opportunity for many buyers.  FHA website has more information for you or contact me  and we’ll find a lender who will help you decide which loan program is best for you.

Top Economists Say Recovery Has Begun

Top Economists Say Recovery Has Begun
Economic recovery is about making people feel more confident, says Mark Zandi, chief economist of Moody’s Economy.com.

Zandi evidenced increasing home sales and gains in the stock market are some promising signs that the worst is over and people will start spending again.

“We’re starting to see some pent-up demand for goods,” he says.

But Zandi warns that the situation is still fragile. “Confidence is a very fickle thing. It can go from abject pessimism that pervades now to a more balanced view of the world rather quickly.”

Robert Brusca of FAO Economics is predicting strong growth in the last half of the year and a quick recovery for the labor market. “You’ve lost 5 million jobs. It shouldn’t be hard to put 2.5 million jobs back on rather quickly after you hit bottom,” he said.

Joseph Carson, chief economist at AllianceBernstein, calls improving home sales, a rising stock market, and better-than-expected retail sales in February and March good signs of a turnaround. By the time President Obama’s stimulus package takes effect, the economy will be ready, he says.

“The stimulus has a much better chance of working if trends are already turning up than if it needs to halt a decline,” he said.

Source: CNNMoney, Chris Isidore (04/06/2009)

« Previous Page