Richmond Home Shopper

Mortgage Market Update

Positive inflation numbers helped mortgage rates move lower early last week, but stronger than expected economic data turned them higher later in the week, leaving mortgage rates nearly unchanged from the previous week. The announcement of larger than expected Treasury auctions next week ($104 billion) also was negative for mortgage rates. Read the rest of this entry »

National Real Estate News Update

Fears about the economy led to a stock market decline and pushed mortgage rates a little lower during the week. Even with Tuesday’s passage of the new $787 billion stimulus plan, economic growth forecasts from Wall Street economists and from the Fed were revised lower.

Wednesday, President Obama announced the $275 billion Homeowner Stability Initiative, which contained broad outlines of three major elements intended to help prevent foreclosures and falling home values. Read the rest of this entry »

Obama’s Foreclosure Plan

President Obama to set aside $75 billion to slow foreclosures! Goal to bring mortgage payments down to 31% of income!

The Obama administration has rolled out a plan to help 9 million troubled homeowners modify their mortgages at a cost of $75 billion to  taxpayers. There are two parts of the plan to help:

#1  To help refinance 5 million home owners in trouble with loans owned or guaranteed by Fannie Mae or Freddie Mac.

#2  To make loan modifications with government subsidies to lenders to reduce monthly interest payments.

Some highlights…. Read the rest of this entry »

Stimulus Falls Short For Real Estate

Late last week the House and the Senate agreed on a compromise $789 billion fiscal stimulus plan, which is expected to pass within days. The Obama administration estimates that the plan will create 3.5 million jobs. Both the House and the Senate had passed versions which were larger than the final compromise plan, and the reduction in scope helped mortgage markets. A smaller plan means that the government will have to issue less debt. Unfortunately, one of the spending cuts in the final plan was a provision for a $15,000 homebuyer tax credit, which came with an estimated price tag of $35 billion. This was a measure which experts say could have quickly energized the real estate markets. Instead, the government will leave in place an existing $7,500 tax credit, applicable to only first time homebuyers. The good news and primary change to the tax credit is that it will no longer need to be repaid. The estimated cost of this $7,500 tax break is less than $3 billion.

In the market for a home in the Richmond area?  Be smart and meet with a knowledgeable REALTOR and mortgage lender. Skye Bruce Properties, The Official REALTORS and Buyer’s Agents of RichmondHomeShopper.com has a support team of industry experts including mortgage lenders. Contact them today!

5 Ways To Control Your Homeowners Insurance Costs

Some great tips from the Richmond Farmers Insurance Team to control your Homeowners Insurance Costs. In our tougheconomic environment this is good advice.  Sometimes we over-look evaluating things like this which can save us hundreds of dollars.  It all adds up!

1. Shop around. Remember, cheaper insurance rarely means better insurance. Ask your friends, realtor, or mortgage broker who they recommend. Seek out a trusted professional to explain vital coverage differences.   You can also check the National Association of Insurance Commissioners (www.naic.org). They will have information to help you choose a reputable insurer in your state.
2. Raise your deductible. Deductibles are the amount of money you have to pay toward a loss before your insurance company starts to pay a claim. The higher your deductible is the lower your premiums are. A typical Home Owner deductible is $500. If you can afford to raise it to $1,000 you can save as much as 25% in your premiums. Read the rest of this entry »

Cash Gives You An Edge When Buying Richmond Real Estate

In these difficult and challenging times cash can give you an edge in buying a home.  Cash, equtes to more buying clout now in these tough financial times. In the past, people have sought out more liquid investments for their cash on hand and grab an easy to get low interest mortgage. Today with the equity markets depressed at the same time that mortgage lending has tightened the tables have turned. Those wielding ready cash in a recession are always ahead of the game. Having cash gives you a leg up in securing better terms for your mortgage and in negotiating with sellers.  Sellers that know you are well qualified will spend much more time negotiating because you will be viewed as serious buyer. Read the rest of this entry »

Fix Rate Mortgages Drop To 2003 Levels!

Richmond area mortgage lenders are reporting that rates moved even lower last week, helped by economic weakness and recent actions by the Fed and the Treasury. Conforming fixed-rate mortgage rates dropped to levels last seen in 2003. According to Freddie Mac, the weekly decline in rates was the largest since 1981, over its Wednesday to Wednesday measurement period. Read the rest of this entry »

Home Buying Tip: The Importance of Mortgage Pre-Approval

Getting pre-approved for a mortgage is a great first step in the home buying process, but the amount you get approved for should not always be taken as your perfect spending amount. Often times, the amount you are pre-approved for is based off of monthly payments that might be outside the range that you are prepared to pay. Especially in our current economy it is prudent not to set your budget based on your maximum mortgage approval level. Read the rest of this entry »

First Time Homebuyer Mortgage Myths

As first-time home buyer’s grow curious about the home-buying process, they often turn to friends and family for advice about purchasing a home. While these sources can provide useful tips and information, they also may perpetuate some common home-buying myths.

While family and friends may have the best intentions when sharing their purchase experiences, it is important to make sure that first-time homebuyers have accurate information.

There are many resources first-time buyers can use for learning about the home-financing process, including attending local mortgage seminars or researching online. Well-known mortgage lenders often have educational resources and mortgage tools on their Web sites.

So what are some common home-buying myths? Read the rest of this entry »

First Time Homebuyers, Don’t Miss Out!

Don’t miss the opportunity of a lifetime! A new Federal Home Buyer Tax Credit provides $7500 to help qualified first time home buyers get into the house of their dreams. For potential first time home owners this newly enacted legislation can provide a bridge to that some times elusive dream of owning a home.Homes purchased on or after April 9, 2008 and before July 1, 2009 are eligible.

First-Time Home Buyer Tax Credit at a glance:

• The tax credit is available for first-time home buyers only.
• The maximum credit amount is $7,500.
• The credit is available for homes purchased on or after April 9, 2008 and before
  July 1, 2009.
• Single taxpayers with incomes up to $75,000 and married couples with incomes up to $150,000 qualify for the full tax credit.
• The tax credit works like an interest-free loan and must be repaid over a 15-year period.

For more information please email us!