Archive for August, 2011
Is Buying A Home Really Cheaper Than Renting? The Answer Will Surprise You!
Is Buying A Home Really Cheaper Than Renting? The Answer Will Surprise You!
With all the problems the economy has had in the past few years, one piece of good news has surfaced for those wanting to buy a home. In 74% of of the country's 50 largest cities buying was cheaper than renting in July. This was reported by the real estate web site Trulia.
On August 16th CNNMoney posted an article online titled "Buying is cheaper than renting in most U.S. cities." The article stated that "Home prices have taken such a beating and demand for rental units has increased so much that it's now cheaper to buy a two-bedroom home than to rent one in most major U.S. cities." It went onto say "In addition to a continuing decline in home prices, rock-bottom interest rates have added a lot of weight to the buy side of the scale. The overnight average rate for a 30-year fixed was just 4.19% on Monday, according to Bankrate.com. A 15-year fixed averaged just 3.43%."
Forbes online recently had an article titled "U.S. Cities Where Buyers Do Better Than Renters." According to Forbes "The dynamics of buying vs. renting are unlikely to tip back to favor renting in any hurry. Analysts who track the real estate investment trusts (REITs) that own and operate apartment buildings have noted the overbuilding of single-family homes last decade that led to insufficient inventory of multi-family dwellings. Turnover rates for apartment REITs are at record-low levels Raymond James analyst Buck Horne said in an interview last month and that means that in many high-demand areas rents will be on the rise."
In addition, home prices have started to stabilize and even increase in some parts of the country. PR Newswire posted an article titled "April Seasonal Boost in Home Prices According to the S&P/Case-Shiller Home Price Indices"
The table below summarizes the results for April 2011. The S&P/Case-Shiller Home Price Indices are revised for the 24 prior months, based on the receipt of additional source data. More than 24 years of history for these data series is available, and can be accessed in full by going to www.homeprice.standardandpoors.com
Are you thinking about buying a home? Shouldn't you get started now?
Your source for VA loan information.
My direct line is 240.813.0614. So let me hear from you! Remember...it doesn't cost a penny to talk...so call right now and I will answer all your questions.
Alan Gross
Senior Mortgage Consultant
PrimeLending, A PlainsCapital Company
704 Quince Orchard Rd., Suite 230
Gaithersburg, MD 20878
Home Office: 240.813.0614
Email: agross@primelending.com
Web: www.mtg-info.net
Web: www.DCMilitaryVALoans.com
NMLS#217388
Refinancing A VA Loan. What is an IRRRL?
So what is a IRRRL? It's the term used to refinance a VA Loan to lower the interest rate or switch from an Adjustable Rate Loan to a Fixed Rate Loan. IRRRL is short for Interest Rate Reduction Refinancing Loan.
VA does not require that an appraisal be or credit information be completed. But in today's economy with house values having dropped in many parts of the country and many people struggling the lender may require both an appraisal and credit check be completed.
The IRRRL must always be a fixed rate loan. It can be for a 30 or 15 year term. The payment on the new loan must be less than the current payment unless the loan is being refinanced from an ARM to a fixed rate or the new loan term has shorter term than the current loan.
You may choose any lender that handles VA Loans to assist you with your IRRRL. There is no requirement that you go with the lender collecting your payments or the lender that originally did your loan.
Since you already have a VA Loan no Certificate of Eligibility is required.
The IRRRL loan can include the existing loan balance, allowable fees and charges, up to $6,000 of energy efficiency improvements and the VA Funding Fee (May be waived in some ciricumstances.)
For more information on VA Loans go to: www.DCMilitaryVALoans.com
Your source for VA loan information.
My direct line is 240.813.0614. So let me hear from you! Remember...it doesn't cost a penny to talk...so call right now and I will answer all your questions.
Alan Gross
Senior Mortgage Consultant
PrimeLending, A PlainsCapital Company
704 Quince Orchard Rd., Suite 230
Gaithersburg, MD 20878
Home Office: 240.813.0614
Email: agross@primelending.com
Web: www.mtg-info.net
Web: www.DCMilitaryVALoans.com
NMLS#217388
How Low Can Mortgage Interest Rates Go?
The economy has been showing signs of weakness causing the Dow Jones Industrial Average to plummet in the past few days. Part of the reason for the fall is the concern over the jobless figures which have not shown signs of getting better.
One of the effects of the downturn is stock prices has been to reduce long term interest rates. Mortgage interest rates are now dropping towards record low levels. The question is how low will they go. And will the mortgage interest rates stay low for very long? In the past year they have hit low levels only to rebound quickly.
If you are looking to buy a home it looks like we have the "perfect storm" in the real estate market with a combination of low housing prices and low interest rates. The Commerce Times published an article title "No Time Like the Present to Look Into Residential Real Estate." The article concludes "All of the above having been said, now might be a great time to purchase some residential property. If you have reasonable hope in the future, think about what you property could possibly be worth 10 or 20 years from now. In retrospect, you might have made yourself quite a deal."
If you own your home and are thinking about refinancing is this a good time? Here's what theadvertiser.com, A Gannett Company, has to say recently in an article titles "Is it a good time to refinance?" "Despite doom-and-gloom reporting, not every homeowner in the U.S. has negative equity right now. And with interest rates still hovering near record lows, those with equity are likely asking themselves whether it's a good time to refinance. Well, is it? Let's take a look:" The article concludes "So even if your equity is pretty low, there are options. The point is, with rates this low, it's a good time to sit down and discuss whether refinancing would improve your loan situation. We all know that rates are fleeting and what's here today may be gone tomorrow. Contact your local Realtor or mortgage banker for more information."
Your source for VA loan information.
My direct line is 240.813.0614. So let me hear from you! Remember...it doesn't cost a penny to talk...so call right now and I will answer all your questions.
Alan Gross
Senior Mortgage Consultant
PrimeLending, A PlainsCapital Company
704 Quince Orchard Rd., Suite 230
Gaithersburg, MD 20878
Home Office: 240.813.0614
Email: agross@primelending.com
Web: www.mtg-info.net
Web: www.DCMilitaryVALoans.com
NMLS#217388
