By Dennis Norman, on March 9th, 2020 The typical median-priced existing home sold for $233,000 in February 2019 and a year later, as the chart below shows, in February 2020 the typical median-priced home sold for $235,000, an increase of just under 1%. Here’s the beauty though, thanks to interest rates dropping from an average of 4.41% a year ago to 3.29% today, even with the slight increase in price, the typical St Charles County home costs less today than a year ago! Not just by a little either as the payment on the median price a year ago (no money down) would have been $1,178.18 at the current rates at the time, the payment today, at the higher price but lower rates would be just $1,019.15, a savings of $159.03/month or 13.5%! Oh, and just to show the “compound effect” of this, over the life of the loan, you will save $55,249 in interest.
So, what are you waiting for? Buy a house!
[xyz-ips snippet=”St-Charles-County-For-Sale-and-Open-Houses”]
St Charles County Existing Home Sales – Past 13 Months
(click on chart for live-interactive chart)
By Dennis Norman, on August 1st, 2019 Yesterday afternoon, the Federal Reserve released a statement that was quite a vote of confidence for how the economy is doing. The Fed Reserve’s statement included “…the labor market remains strong and that economic activity has been rising at a moderate rate. Job gains have been solid, on average, in recent months, and the unemployment rate has remained low.” and went on to say “Market-based measures of inflation compensation remain low;”.
As a result of the positive economic conditions, the Federal Open Market Committee announced it would lower the target range for the federal funds rate to 2 to 2-1/4 percent. The committee went on to give a very positive outlook on the future economy as well saying that “sustained expansion of economic activity, strong labor market conditions, and inflation near the Committee’s symmetric 2 percent objective are the most likely outcomes…”.
Will the move by the Fed Reserve cause lower mortgage interest rates?
It’s hard to say if this announcement will prompt immediate lower interest rates as the mortgage market takes a little longer view of things. However, while we don’t know if mortgage rates will decline or, if so by how much, I think, absent some major shift or change in the economy, it is safe to say that mortgage rates are not going up at this time or in the very near future.
Mortgage interest rates have been at historic lows for years…
Continue reading “Strong Economy and Low Inflation Prompt Fed Reserve To Lower Interest Rates“
By Dennis Norman, on February 19th, 2019 After mortgage interest rates on a 30-year fixed rate mortgage nearly hit 5 percent back in November, they have steadily declined and this past week fell to an average of 4.37% according to the Freddie Mac Primary Mortgage Market Survey. Last weeks 30-year fixed rate mortgage rate of 4.37% was the lowest average rate report by the survey since Feb 8, 2018, when the average rates were 4.32%.
The outlook for mortgage interest rates looks promising as well with the most recent Fannie Mae Housing Forecast predicting the 30-year fixed rate will stay at 4.5% through the end of 2020.
30-Year Fixed Rate Mortgage Average In The U.S.
click on chart for live, interactive chart
By Dennis Norman, on June 28th, 2016 Mortgage interest rates have been falling since last Thursday when the referendum passed for the United Kingdom to exit the European Union. As the chart below shows, interest rates on a 30 year fixed-rate mortgage today averaged 3.44%, a new 52-week low and a decline of nearly 3/4 of 1 percent from a year ago when they were 4.20%. The payment on a $160,000 home loan at today’s rates would be $713 (principal and interest), a decline of nearly 9 percent from a year ago when the payment on the same loan amount would have been $782.
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LIVE Mortgage Interest Rates – Updated Daily Continue reading “Falling Interest Rates Make St Louis Homes Even More Affordable“
By Robert Fishel, on June 21st, 2012  When applying for a mortgage, a borrower’s “Occupancy Type” is a major factor in determining maximum loan-to-value (equity), loan program available and mortgage interest rate. An Owner Occupied property will have better terms (less down payment, better rates) than a Non-Owner Occupied property.
Three Types of Occupancy:
Owner Occupied / Primary Residence -According to HUD, a principal residence is a property that will be occupied by the borrower for the majority of the calendar year. At least one borrower must occupy the property and sign the security instrument and the mortgage note for the property to be considered owner-occupied. Continue reading “What’s The Difference Between A Single Family, Second Home and Investment Property?; St. Louis Mortgage rate update“
By Robert Fishel, on June 13th, 2012
The U.S. Department of Housing and Urban Development and the U.S. Department of the Treasury released their May Housing Scorecard, which collects key market data and tracks the administration’s recovery efforts. According to the May scorecard, recent market data contains a number of promising indicators and increasing signs of stability. In April, sales of existing homes increased in every region of the country and the number of new homes rose for the first time since 2007. Continue reading “St. Louis Mortgage Rate Update; Housing Scorecard Finds Promise in Recent Market Data“
By Robert Fishel, on April 11th, 2012
How can a fully approved loan get denied for funding after the borrower has signed loan docs?
And then it happens. The underwriter runs a new credit report just before closing and it turns out the prospective borrower had run up a credit card balance, buys new furniture/appliances etc. and now the new debt kills the loan.
If you are serious about buying or refinancing a home, be conscientious about your obligations and credit. The following is a quick rundown of issues that come up at the last minute and either delay or kill a closing. Continue reading “St. Louis Mortgage Rate Update; It’s not over till it’s over“
By Robert Fishel, on March 21st, 2012
Mortgage rates have been rising nonstop since the end of last week. If you are considering a refinance or taking the plunge and buying a new home, you’d better get moving. I just had a prospect shop rates and terms for his new home over the last couple of weeks and just called back; he finally decided on a lender and wanted an updated rate quote to lock his loan. Needless to say, he was terribly disappointed…the rates we originally spoke about on a 30 year fixed rate a couple of weeks ago was in the high 3’s, my quote yesterday was 4.25% (4.45% APR ). Continue reading “St. Louis Mortgage Rate Update; "You’ll never buy at the bottom" Interest rates are on the rise“
By Robert Fishel, on July 14th, 2011 The home-buying process can be a little intimidating for not only first-time home-buyers but also repeat home-buyers. Here is a basic outline of the home-buying process as well as recommendations of how to approach each task which I hope will help you with this process:
Get pre-qualified for a loan: talk with your mortgage banker.
By Robert Fishel, on June 29th, 2011
Applying for a mortgage loan can be a nerve-wracking experience,” says Ruth E. Battle, Senior Vice President of Paramount Mortgage Co. “Even after completing all the paperwork and complying with document requests; the lender rejects the loan. Why does this happen?” Consumers should know their “no.”
Battle says some of the “basic reasons loans are denied include insufficient income, poor credit, inadequate assets and low appraised value.” Over the last few years, rejection reasons have become much more complicated. The reason a consumer can be told “no” may have “more to do with the lender than the consumer.” Continue reading “Borrowers should know their ‘no’; St. Louis Mortgage Interest Rate Update“
By Robert Fishel, on June 23rd, 2011
In the past 18 months, massive legislative changes have affected the mortgage landscape. What does that mean for consumers? It means people seeking a mortgage can expect to do more paperwork when planning to purchase or refinance a home. Listed below is pertinent information regarding the new law changes. Continue reading “Obtaining a home mortgage getting harder and harder; St. Louis Mortgage Interest Rate Update“
By Robert Fishel, on June 8th, 2011
First-time home buyers receive a forgivable 3% cash assistance loan for down payment and closing costs.
Missouri Housing Development Commission (MHDC) provides a competitive interest rate on a safe 30-year fixed rate 1st mortgage. Your 3% advance loan is treated as a 2nd mortgage completely forgivable after five years of continuous occupancy. New, Constant Funding means MHDC will have the monies available for the borrowers regardless of bond issuance. For further information go to http://www.box.net/shared/v0piidunf7 or www.mhdc.com. Continue reading “New Limits for First Time Home Buyers Down-payment Assistance Program; St. Louis Interest Rates Update“
By Robert Fishel, on June 2nd, 2011
Thinking of purchasing a home or refinancing a mortgage? Here are some tips to help make the process smooth:
Know your current situation. Be aware of your credit history; your credit report may contain out of date, or inaccurate items. Carefully review your credit report and make a note of items that should be fixed. It takes time, but you can correct mistakes successfully with a written request to the individual credit bureaus. It is also a good idea to examine your monthly housing expenses to determine how comfortable you are with your budget without sacrificing important necessities. Continue reading “Advice for consumers looking to purchase a home or refinance their mortgage; St. Louis mortgage interest rate update“
By News Desk, on May 25th, 2011
Should you talk to you mortgage professional before house hunting?
Absolutely!
Even if you haven’t so much as selected a Realtor®, it’s important to talk with your mortgage professional first. Why? Continue reading “Should you get pre-qualified for a mortgage before buying a home?“
By Robert Fishel, on May 19th, 2011
“Ballparking” mortgage rates just is not the same anymore. Home buyers who obtain online quotes from popular websites are receiving nothing more than a starting point for what their final mortgage rate will be. This is due to a government-led pricing scheme called loan-level pricing adjustments or LLPAs.” Continue reading “Loan-level price adjustments and how they affect home-buyers; St Louis Mortgage Interest Rate Update“
By Robert Fishel, on May 12th, 2011
What a great time to be a First Time Home buyer! Historically low interest rates and great home prices! However, the home buying “process” can be a difficult if the borrower is not prepared and have not done their homework.
Before making offers and writing contracts, talk to your mortgage lender and get Pre-Qualified for a loan. Pre-Qualify means you can confidently begin house shopping in the appropriate price range. Continue reading “What First-Time Home Buyers Need to Know; St Louis Mortgage Interest Rate Update“
By Robert Fishel, on April 27th, 2011 Most mortgage financing plans provide only permanent financing. That is, the lender will not usually close the loan and release the mortgage proceeds unless the condition of value of the property provides adequate loan security, When rehabilitation is involved , this means the lender requires improvements to be finished before a long-term mortgage is concerned. Continue reading “FHA 203(k) financing helps buyers take advantage of as is bargains; St Louis Mortgage Interest Rate Update“
By Robert Fishel, on April 21st, 2011
First-time home buyers receive a forgivable 3% cash assistance loan for down payment and closing costs.
Missouri Housing Development Commission (MHDC) provides a competitive interest rate on a safe 30-year fixed rate 1st mortgage. Your 3% advance loan is treated as a 2nd mortgage completely forgivable after five years of continuous occupancy. New, Constant Funding means MHDC will have the monies available for the borrowers regardless of bond issuance. Continue reading “First Time Home Buyers Down-payment Assistance Available; St Louis Mortgage Interest Rate Update“
By Robert Fishel, on April 13th, 2011
The VA loan program was designed to make home ownership more obtainable for eligible veterans. Home purchases with VA loans must be the veteran’s primary residence. There is no down payment required; no mortgage insurance requirement and VA loans do not incur a pre-payment penalty. Continue reading “VA Loan Programs make home ownership more affordable for Veterans; St Louis Mortgage Interest Rate Update“
By Robert Fishel, on April 6th, 2011 
For those fence sitters who are thinking about buying or refinancing a home, be advised that FHA will be raising the annual mortgage insurance premium (MIP) by a quarter of a percentage point (.25) on all 30- and 15-year loans. Continue reading “FHA increasing charge for mortgage insurance; St Louis Mortgage Interest Rate Update“
By Robert Fishel, on March 30th, 2011
In this tighter credit environment, FHA remains to be a great alternative for buyers with limited resources for a down payment and closing costs or past credit problems. Underwriting guidelines are more lenient than conventional guidelines. Continue reading “FHA-great for borrowers with limited resources or credit issues; St Louis Mortgage Interest Rate Update“
By Robert Fishel, on March 24th, 2011
WHAT IS A CREDIT SCORE?
Simply stated, credit scores are a statistically-based tool to assess the future performance of a borrower. Scores are derived from the history of a borrower as it is reported to the credit repositories from any creditor. Credit scores are a proven indicator of the likelihood to repay a loan or credit obligation. The lower the score; the more risk from a borrower to repay a loan, on time and in full. Scores range from 400 to 850.
This process was started by Fair, Isaac and Co., which is why credit scores are also called FICO scores. Continue reading “Revisiting Credit Scores; St Louis Mortgage Interest Rate Update“
By Robert Fishel, on March 16th, 2011
Why rent when you can own?
Over the past couple of years there has been much talk about home ownership losing it’s luster and asking the question if it is better to rent than own a home at this point. Today, I want to share with you 11 reasons to own a home: Continue reading “11 Reasons to Own a Home; St Louis Mortgage Interest Rate Update“
By Robert Fishel, on March 9th, 2011
There have been many changes in the mortgage banking industry in the last couple of years. New regulations and laws now stipulate exact procedures, timetables and specific lending requirements to obtain a home mortgage. Mortgage bankers must obtain a federal license and state licenses for every state in which they originate loans.
These changes in lending policies are designed to protect and aid borrowers when making mortgage decisions to purchase or refinance a new home. Continue reading “Do you know who you are dealing with? St Louis Mortgage Interest Rate Update“
By Robert Fishel, on March 2nd, 2011
Seller concessions can be any negotiation where the seller, builder, developer or any interested party gives something up to the buyer…The concession can help lower or eliminate the amount a borrower is required to bring to the closing table. In some cases, a seller-paid concession can mean the difference between closing a home sale and losing one. Continue reading “What are Seller Concessions?; St Louis Mortage Interest Rate Update“
By Robert Fishel, on February 23rd, 2011
New regulations signed into law by the President allow HUD to increase the amount of premiums charged for FHA single family housing mortgage insurance programs. Assistant Secretary of Housing & Federal Housing Commissioner, David H. Stevens, has authorized an increase to help build back FHA’s capital reserves to their statutory level. There will be no increase in the Upfront Mortgage Insurance Premium (UFMIP): UFMIP for purchase money mortgages remains at 1.0%. Continue reading “FHA Increases monthly mortgage insurance premiums; St Louis Mortage Interest Rate Update“
By Robert Fishel, on February 16th, 2011
St. Louis MORTGAGE RATES for February 16, 2011:
By Robert Fishel, on February 9th, 2011
Missouri Housing Development Commission offers first-time home buyers a forgivable 3% Cash Assistance Loan (CAL) for down payment and closing costs. Terms of this program include: Continue reading “First Time Homebuyer Monies are still available… Why rent when you can own?; St Louis Mortage Interest Rate Update“
By Robert Fishel, on February 2nd, 2011 St. Louis MORTGAGE RATES for February 2, 2011:
By Robert Fishel, on January 26th, 2011 Even though over the past few years, ARM’s (adjustable rate mortgages) have received somewhat of a “bad name”, there are truly benefits to them including:
- ARM rates are now more attractive than ever before.
- Rates have fallen to 3.50% for a 5/1 ARM.
- ARMs are predictable.
- Rates are capped so there are no surprises for borrowers.
- Rates adjust only on the remaining principal of the loan.
- Rate adjustments could decrease (increases are limited to the prevailing index in which the ARM is based).
- Lower Monthly Payments – Increases the buying power of borrowers which attracts buyers to new homes. Continue reading “The Benefits of ARM’s; St Louis Mortgage Rate Update“
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