Aug6th
Monday, August 6th, 2007
The collapse of the subprime lending market has spread to the financial markets, sparking fears that tighter credit will have a broader impact on consumers and the economy.
The U.S. government has downplayed the risk of the subprime meltdown spreading. Treasury Secretary Henry Paulson has said the effects are largely contained, and the economy is still strong.
In the financial markets, credit, including corporate bonds, has become harder to get, but Mark Zandi, chief economist of Moody’sEconomy.com, is loath to call it a “credit crunch”. He does admit to a “liquidity squeeze,” however. The difference: In a crunch, nobody can get a loan; in a squeeze, only the riskier borrowers are cut out.
Today’s Rates
_________________________________
Product Rate APR
_________________________________
5/1ARM *5.625% *6.785%
7/1 ARM *5.750% *6.910%
30 Yr. Fix. *6.375% *6.435%
Posted in General Indianapolis, Mortgage Rates | No Comments »
Jul24th
Tuesday, July 24th, 2007
A sign next to a home saying “Zero Down” can often be misleading or bring confusion. To better inform you of how zero down works here are a list of the ways Capital Mortgage Solutions uses the term “zero down”:
1. Fannie Flex or Freddie Gold up to 417K;
2. 80/20 loans with the maximums at 80% at 417K and the 20% at 104K for a total purchase of 521K;
3. My Community can go up to 100% financing, but borrower income cannot exceed 63K in Central Indiana4;
4. VA financing up to 417K;
5. FHA up to 207K with Seller participation in a 3% to 5% Down Payment Assistance through a non-profit company such as Genesis, Own, Nehemiah, Ameridream, Futures, etc..this is the scenario that would require the Seller to agree to pay the 3% from proceeds at closing. In these situations if the comparables show that the home is reasonably priced, there is less room for negotiations. In fact, the purchase price may exceed the list price by a bit as long as the appraised value allows it.
Let’s keep in mind the zero down payment does NOT say zero investment. The buyer would still be required to pay closing costs, points and prepaids less property tax credits. In most cases though, if the buyer is tight on cash, we try to get the seller to pay for these items. Also it is important to keep in mind that these programs cost more either in points or in the rate because they are considered high or higher RISK loans. We try to use any extra money available to pay the points to keep the rate down and to meet debt to income ratios.
For questions and more information in regards to zero down, please contact us or our partners at Capital Mortgage Solutions.
Posted in General Indianapolis, Mortgage Rates | No Comments »
Jun4th
Monday, June 4th, 2007
Our partners at Capital Mortgage Solutions can help make your home- owning dreams come true with a mortgage with zero down!!
For more information and details contact William Haddad at CMS:
Office: 317-663-7555
Fax: 317-218-6037
Cell: 317-372-0755
Toll Free: 877-663-7555
Posted in Mortgage Rates | No Comments »
Jun2nd
Saturday, June 2nd, 2007
An update on mortgage rates courtesy of Capital Mortgage Solutions!
According to Michael Marsh, Director of Sales at CMS:
” The nation’s home prices rose at the slowest pace in a decade according to a government report. Prices for single-family houses rose an average 4.3 percent from a year earlier, the smallest gain since the 4.1 percent increase in the third quarter of 1997. During the first three months of 2007 prices gained 0.5 percent, the slowest quarterly growth since the 0.4 percent increase in the third quarter of 1996. The housing slowdown weighs heavily on economic activity as the growth of the economy grew slowly to 0.6 percent last quarter.
The Fed voted unanimously to leave the benchmark U.S. lending rate at 5.25 percent for a seventh consecutive meeting with expectations of the same vote in June.
New-home sales, accounting for 15 percent of residential transactions, surged 16 percent in April as the median price dropped 11 percent.
Freddie Mac reports the average rate for a 30 year fixed mortgage this week is 6.42 percent with the probability of 6.2 percent for an annual average.”
Today’s Rates
_________________________________
Product Rate APR
_________________________________
5/1ARM *5.625% *5.688%
7/1 ARM *5.750% *5.814%
30 Yr. Fix. *6.125% *6.190%
Posted in General Indianapolis, Mortgage Rates | No Comments »
May30th
Wednesday, May 30th, 2007
_________________________________
Product Rate APR
_________________________________
7/1 ARM *5.875% *5.943%
30 Yr. Fix. *6.125% *6.194%
Thanks to Capital Mortgage Solutions!
Posted in Mortgage Rates | No Comments »