St Louis Mortage Interest Rate Update

Paramount Mortgage Company - St LouisSt. Louis MORTGAGE RATES for February 2, 2011:

The Benefits of ARM’s; St Louis Mortgage Rate Update

Paramount Mortgage Company - St LouisEven 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

Private Mortage Insurance helps you get the loan; St Louis Mortgage Rate Update

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Private Mortgage Insurance, also known as PMI, is a supplemental insurance policy you may be required to obtain in order to get a mortgage loan. PMI is provided by private (non-government) companies and is usually required when your loan-to-value ratio — the amount of your mortgage loan divided by the value of your home — is greater than 80 percent.

Mortgage Insurance isn’t a bad thing — it allows you to make a lower down payment and still qualify for a mortgage loan. In fact without PMI, many of us would not be able to purchase our first home.

Continue reading “Private Mortage Insurance helps you get the loan; St Louis Mortgage Rate Update

Buy and Rehab Using an FHA Loan; St. Louis Mortgage Rate Update

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The FHA 203K rehab program is intended to promote and facilitate the restoration and preservation of existing homes.  It enables borrowers to finance the acquisition and rehab of a property in one step; the loan value is based on the projected value of the home at the completion of the rehab.

Continue reading “Buy and Rehab Using an FHA Loan; St. Louis Mortgage Rate Update

Mortgage Interest Tax Deductibilty Extended Through 2011; St. Louis Mortgage Rate Update

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The President has signed the bill extending Mortgage Insurance tax deductibility through December 31, 2011. Borrowers can use Mortgage Insurance (MI) to buy a home sooner and enjoy predictable payments, while benefiting by deducting the premiums from their income taxes. And MI can be canceled once the home buyer builds enough equity.   MI is required on all mortgage loans that exceed an 80% loan to value. Continue reading “Mortgage Interest Tax Deductibilty Extended Through 2011; St. Louis Mortgage Rate Update

Co-Signing for your childs loan; St. Louis Mortgage Rate Update

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As your kids grow up, you support them through their bumps and bruises, pay for their braces, school and much, much more.

Over the past few years, I have run into the issue of young adults not being able to qualify for a mortgage without a parent’s help.  So, the big question is:  should you offer to co-sign on your child’s loan?   Your kid may need something more than your money… Continue reading “Co-Signing for your childs loan; St. Louis Mortgage Rate Update

Online Mortgage Qualifier; St. Louis Mortgage Rate Update

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The first step in buying a house is determining your budget.

This calculator steps you through the process of finding out how much you can borrow. Fill in the entry fields and click on the “View Report” button to see a complete amortization schedule of your mortgage payments: Continue reading “Online Mortgage Qualifier; St. Louis Mortgage Rate Update

Cash-In Refis; St. Louis Mortgage Rate Update

Paramount Mortgage Company - St LouisCASH-IN REFIS…

Over the past years, many of Americans pulled money out their homes through “cash-out” refis.  Today, many of my clients are bringing cash into their refinance transactions.  Money is flowing in the opposite direction. Continue reading “Cash-In Refis; St. Louis Mortgage Rate Update

Freddie Mac Suspends Evictions Over Holidays; St. Louis Mortgage Rate Update

Paramount Mortgage Company - St LouisFreddie Mac announced today it has ordered all evictions involving foreclosed occupied single family and 2-4 unit properties that had Freddie Mac mortgages to be suspended from December 20, 2010 to January 3, 2011. Continue reading “Freddie Mac Suspends Evictions Over Holidays; St. Louis Mortgage Rate Update

Additional payment paydown calculator and St. Louis Mortgage Rate Update

Paramount Mortgage Company - St LouisHow much interest can you save by increasing your mortgage payment?  Check out the link below and  the financial calculator will help you determine your savings. Click the “View Report” button to see a complete amortization payment schedule, and how much you can save on your mortgage! Continue reading “Additional payment paydown calculator and St. Louis Mortgage Rate Update

Mortgage Loans 101 and St. Louis Mortgage Rate Update

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Obtaining a mortgage to buy a home, or to refinance an existing mortgage, can sometimes be a little intimidating to borrowers, but it needn’t be.  Granted, this is something the typical person only does every few years at most and regulations continually change the process, but that’s where lenders such as myself come in to the picture, to provide you the info you need and to  guide you through the process.  Continue reading “Mortgage Loans 101 and St. Louis Mortgage Rate Update

Understanding the Types of Home Loans Available; St Louis Mortgage Watch

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Conventional Loan Programs

Conventional loans are traditional home mortgages, not backed by any government program of insurance or guarantee. There are standard underwriting guidelines for conventional conforming loans up to $417,000. These loans can carry fixed or variable (ARM) rates and a variety of repayment terms can be tailored to your individual needs. Buyers will need cash reserves/savings to cover two months of payments and generally, there is not a penalty for prepayment. Continue reading “Understanding the Types of Home Loans Available; St Louis Mortgage Watch

Private Mortgage Insurance helps you get the loan; St Louis Mortgage Watch

Paramount Mortgage Company - St LouisMortgage Insurance, also known as PMI, is a supplemental insurance policy you may be required to obtain in order to get a mortgage loan. PMI is provided by private (non-government) companies and is usually required when your loan-to-value ratio — the amount of your mortgage loan divided by the value of your home — is greater than 80 percent. Continue reading “Private Mortgage Insurance helps you get the loan; St Louis Mortgage Watch

The home loan process; St Louis Mortgage Watch

Paramount Mortgage Company - St LouisA critical step in the mortgage loan application process is to verify the sources for your down payment, closing costs and assets, as well as documenting income and debts. The lender uses this step to determine your qualifications as a borrower. Continue reading “The home loan process; St Louis Mortgage Watch

What is the difference between the interest rate and the A.P.R.?; St Louis Mortgage Watch

Paramount Mortgage Company - St LouisYou’ll see an interest rate and an Annual Percentage Rate (A.P.R.) for each mortgage loan you see advertised. The easy answer to “why” is that federal law requires the lender to tell you both.

The A.P.R. is a tool for comparing different loans, which will include different interest rates but also different points and other terms. The A.P.R. is designed to represent the “true cost of a loan” to the borrower, expressed in the form of a yearly rate. This way, lenders can’t “hide” fees and upfront costs behind low advertised rates. Continue reading “What is the difference between the interest rate and the A.P.R.?; St Louis Mortgage Watch

Home Loan Application Checklist; St Louis Mortgage Watch

Paramount Mortgage Company - St LouisIf you have bought a house and are getting ready to apply for your home mortgage, or perhaps you are about to refinance your existing mortgage to take advantage of the dirt-cheap interest rates, this handy loan application checklist will help you be prepared and make the process smoother and quicker: Continue reading “Home Loan Application Checklist; St Louis Mortgage Watch

A Condensed Guide to Closing Costs; St Louis Mortgage Watch

Paramount Mortgage Company - St LouisThere are so many different charges involved in buying a home, it is important to know what to expect at the settlement. Your lender is required to give you a Good Faith Estimate (GFE) of your settlement costs within three business days of your loan application. Once you get it, review the charges below to avoid any surprises when you sit down to close on your loan. Continue reading “A Condensed Guide to Closing Costs; St Louis Mortgage Watch

No Money Down Home Loans for Members of the Armed Forces; St Louis Mortgage Watch

Paramount Mortgage Company - St LouisA Special Program for Members of the Armed Forces:   VA LOANS

FHA Changes Mortgage Insurance Rates-less up front cost but higher payments; St Louis Mortgage Watch

Paramount Mortgage Company - St Louis 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, however lower that actual up-front cost paid by borrowers. Continue reading “FHA Changes Mortgage Insurance Rates-less up front cost but higher payments; St Louis Mortgage Watch

Costly Mistakes of First-Time Homebuyers; St Louis Mortgage Watch

Paramount Mortgage Company - St LouisThe following are the four common first-time home-buyers mistakes:

Spending the maximum on housing:

First-time buyers can be overly optimistic and excited about buying a home, so they tend to borrow the absolute maximum they qualify for (on paper), not necessarily worrying about a budget or other expenses.  Lenders qualify buyers based on their incomes and debt-to-income ratios. However, borrowers have other monthly expenses they need to consider:  maintenance and upkeep on their new home, utilities, transportation, savings, and other necessities that are not counted in the debt-to-income ratios.  Continue reading “Costly Mistakes of First-Time Homebuyers; St Louis Mortgage Watch

The Do’s and Don’ts When Financing Your Home; St. Louis Mortgage Watch

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As the mortgage industry adjusts to new financial regulations, it is more important than ever to ensure that the financing of your new home goes smoothly. Your loan approval is subject to the financial information you provide at the time of your loan approval. Any subsequent changes in your financial situation before the actual date of closing could jeopardize your loan approval and delay your closing. Continue reading “The Do’s and Don’ts When Financing Your Home; St. Louis Mortgage Watch

Six Important Steps on How to Buy a Home; St Louis Mortgage Watch

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STEP 1 Get pre-qualified for a loan:  talk with your mortgage banker.

Determine your “mortgage goals.”  Review your credit history and sources of income.  Do you have money set aside for a down payment?  Do you have an “ideal payment range” you would be comfortable with?   What are your expectations. Continue reading “Six Important Steps on How to Buy a Home; St Louis Mortgage Watch

Which refinancing option is best for you?; St. Louis Mortgage Watch

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Every borrower’s situation is different.  My goal is to provide various options/loan programs that are available to meet the borrower’s needs.  When considering a refinance, the following are typical situations borrowers face: Continue reading “Which refinancing option is best for you?; St. Louis Mortgage Watch

FHA Expected to Announce Further Policy Changes to Address Risk and Strengthen Finances; St. Louis Mortgage Watch

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In the next few days, look for FHA to implement further changes to strengthen its financial situation.  An audit in late 2009 showed that the capital ratio of its Mutual Mortgage Insurance Fund (MMIF) had fallen below its statutorily mandated threshold.  Over the past few months, FHA has raised premiums on its FHA insurance, prohibited seller-financed down payment assistance, stepped up enforcement of its regulations, tightened appraisal rules, banned several lenders from writing FHA guaranteed loans and brought suit against others. Continue reading “FHA Expected to Announce Further Policy Changes to Address Risk and Strengthen Finances; St. Louis Mortgage Watch

Mortgage Tips From a Pro; St. Louis Mortgage Watch

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A home mortgage is the largest debt of most consumers and is nothing to take lightly or approach without diligence and care.

Here are some tips to help guide you and help you avoid the pitfalls that are out there:

  1. Continue reading “Mortgage Tips From a Pro; St. Louis Mortgage Watch

Fannie Mae Tightens Rules; St. Louis Mortgage Watch

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Fannie Mae Rolls out New Loan Quality Initiative (LQI) Program – Tightens underwriting requirements and aims to reduce borrower fraud.

These rules could derail some closings for buyers who rack up purchases or even take out new store credit cards before their home sales have closed.  Continue reading “Fannie Mae Tightens Rules; St. Louis Mortgage Watch

De-Mystifying Credit Scores; Update on St. Louis Rates

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WHAT IS A CREDIT SCORE?

Simply stated, credit scores area 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.

WHAT AFFECTS A CREDIT SCORE?

Keeping a manageable amount of debt and paying on time are ways to positively affect a credit score. Bankruptcy, judgments, collections and liens most negatively affect scores. Scoring factors are “blind” and do not consider anything about an individual other than their creditworthiness. Credit inquiries can ‘ding’, or lower your score. However, any inquiries from one industry within a 30-day period count only once. For example, if a consumer is car shopping and visits three dealers in two weeks who check the consumer’s credit, this only counts as one inquiry and has a minor affect on the credit score.

MORTGAGES AND CREDIT SCORES

Often, underwriters use credit scores as a factor in determining loan approval. This is not the only factor considered, but a credit score can weigh on the loan decision. Good credit pays off. Some loan programs have credit score requirements or offer lower rates for higher credit scores. For example, a credit score above 720 may merit a 1/8% rate decrease. Borrowers that are financially sound enough to buy a home should receive a “market rate” for their loan. Home buyers with scores below 620 may incur higher rates (1-2% above market) or additional fees. Mitigating circumstances can help your approval process if you have credit issues. Your Paramount mortgage banker can help.

To receive a free copy of your credit history you can log on to www.annualcreditreport.com or call 877-322-8228 toll free.

You may also contact the credit bureaus directly:

  • Equifax (800) 685-1111
  • Experian (888) 397-3742
  • Trans Union (800) 916-8800

St. Louis Mortgage Interest Rates – July 21, 2010 *

  • 30-year fixed-rate mortgage 4.50% no points
  • 15-year fixed-rate mortgage 4.000% no points
  • 5/1 adjustable rate mortgage 3.50% no points
  • FHA/VA 30-year fixed rate mortgage 4.50%
  • Jumbo 5/1 ARM 4.375% no points
  • Jumbo 15 year fixed rate mortgage 4.625%

For more information or if you have questions on mortgage rates in St. Louis you may contact me by phone at my direct line, (314) 372-4319, email at rfishel@paramountmortgage.com or you can visit our company website at http://www.paramountmortgage.com.

 

 


*Note- The above rates are based upon a typical sale price of $187,500 with a 20% percent down payment leaving a loan amount of $150,000 to a borrower with a 720 credit score for a loan with no discount points charged. Rates and terms will vary depending upon loan amount, home value, credit and income of borrower.

This information is provided by this author and this site for informative purposes only and is not warranted or guarteed in any way.

 

 

Questions Home-buyers should ask their lender; Update on St. Louis Rates

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The mortgage industry has underwent some dramatic changes in the past year as has the regulations and rules the industry must comply with.  Lender’s are barely able to keep up with everything new so it’s not surprising home-buyers have many questions when it comes to obtaining a mortgage to buy a home.  Therefore, I thought I would take this opportunity to provide a list of questions that a home-buyer should ask their lender that I think will be helpful.  Oh, and since I am a loan officer in St. Louis, I did take the liberty of giving my answer to these questions :)

Q: Are you a Banker or a Broker?

A: Mortgage Bankers are companies that fund their own loans with their own money.  Mortgage Brokers rely on a third party to make the transaction happen.  Paramount is a Mortgage Banker – no delays for closing – we’ll be there with the check!

Q: How can I help the transaction along?

A: Your responsiveness can make a difference in meeting the closing date.  Please return any requested paperwork to Paramount as soon as you can.  Schedule inspections as quickly as possible to allow for any maintenance that may be required.

Q: Who makes the decision on my loan?

A: We have staff underwriters for FHA, VA and Conventional loans, so we are able to make credit decisions quickly and in-house.  Paramount is a locally owned and operated independent mortgage company.  Most of our employees are native to St. Louis so we understand the nuances of our town.

Q: Will I need Mortgage Insurance?

A: Mortgage Insurance is required on all loans with less than 20% down to cover the lender in case of default.  Private Mortgage Insurance (PMI) for conventional loans can be paid monthly or financed through the term of the loan, while FHA loans have an up front fee as well as a monthly premium.  Another option is a Combo Loan – a first and second mortgage – to avoid a PMI premium.

Q: How is my home value determined?

A: Paramount uses certified appraisers with decades of experience and a thorough knowledge of the industry and metropolitan area.  To ensure the integrity of valuation we do not accept appraisals from non-certified or non-approved appraisers.

Q: When do I lock in an Interest Rate?

A: First you need a signed real estate contract and a firm closing date.  You will lock in your rate once the loan program is determined and you are satisfied with the rate available.  We recommend locking in quickly to avoid any potential upswing in the market.

Q: Will I get the best rate possible?

A: You will get the best loan program – including rate, APR and terms – for your needs.  We evaluate your current financial situation and where you anticipate you will be down the road to determine what the best program will be for you and your unique needs; down payment assistance, limited documentation, lowest monthly payment, minimize PMI exposure, etc.  More than rate determines the best loan for the buyer.

 

Q: Who will be at the closing?

A: Paramount will be there!  Typically the borrower and anyone on the loan papers and your realtor attend closing.  Paramount is at every closing delivering the closing documents and check which could save you on title company charges.

If you have more questions or would like additional information feel free to contact me using the contact information at the bottom of this post.

St. Louis Mortgage Interest Rates – July 14, 2010 *

  • 30-year fixed-rate mortgage 4.50% no points
  • 15-year fixed-rate mortgage 4.125% no points
  • 5/1 adjustable rate mortgage 3.50% no points
  • FHA/VA 30-year fixed rate mortgage 4.75%
  • Jumbo 5/1 ARM 4.125% no points
  • Jumbo 15 year fixed rate mortgage 4.625%

For more information or if you have questions on mortgage rates in St. Louis you may contact me by phone at my direct line, (314) 372-4319, email at rfishel@paramountmortgage.com or you can visit our company website at http://www.paramountmortgage.com.

 

 


*Note- The above rates are based upon a typical sale price of $187,500 with a 20% percent down payment leaving a loan amount of $150,000 to a borrower with a 720 credit score for a loan with no discount points charged. Rates and terms will vary depending upon loan amount, home value, credit and income of borrower.

This information is provided by this author and this site for informative purposes only and is not warranted or guarteed in any way.

 

 

Tax Credits and Flood Insurance Extended; St Louis Interest Rates Near Historic Lows

Paramount Mortgage Company - St LouisAfter a close brush with a deadline that could have impacted tens of thousands of home buyers, Congress passed an extension of the Home buyer Tax Credit closing deadline.

The extension is included in the Home Buyer Assistance and Improvement Act and will prevent as many as 180,000 home buyers from losing their eligibility for the tax credit. These borrowers had home purchase contracts pending as of April 30 and had until June 30 to close on their purchases to claim the federal tax credit; with this extension, these households now have until September 30 to close and still claim the tax credit.

Separately, the U.S. Senate also passed the National Flood Insurance Program Extension Act of 2010, extending the National Flood Insurance Program until September 30. This will allow home purchases in the 100-year floodplain to move forward. The House passed the bill last week.

St. Louis Mortgage Interest Rates – July 7, 2010 *

  • 30-year fixed-rate mortgage 4.375% no points
  • 15-year fixed-rate mortgage 4.125% no points
  • 5/1 adjustable rate mortgage 3.50% no points
  • FHA/VA 30-year fixed rate mortgage 4.75%
  • Jumbo 5/1 ARM 4.125% no points
  • Jumbo 15 year fixed rate mortgage 4.625%

For more information or if you have questions on mortgage rates in St. Louis you may contact me by phone at my direct line, (314) 372-4319, email at rfishel@paramountmortgage.com or you can visit our company website at http://www.paramountmortgage.com.

 

 


*Note- The above rates are based upon a typical sale price of $187,500 with a 20% percent down payment leaving a loan amount of $150,000 to a borrower with a 720 credit score for a loan with no discount points charged. Rates and terms will vary depending upon loan amount, home value, credit and income of borrower.

This information is provided by this author and this site for informative purposes only and is not warranted or guarteed in any way.

 

 

Deadline Looms for Missouri’s HOPE Tax Credit; St. Louis Interest Rates Drop

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The state of Missouri funded a $15 million tax credit incentive program in January of this year to help spur home sales, but few have taken advantage of the program.

Now, Missouri home buyers must complete the purchase of their home by August 31, 2010 to take advantage of the program. The Missouri Housing Development Commission (MHDC) must receive their HOPE application by September 30, 2010.

HOPE stands for Home Ownership Purchase Enhancement. Homes purchased after August 31, 2010 will not be eligible for the HOPE program.

The HOPE program was expected to pay the property taxes for 9,000 to 11,000 Missouri families.

As of last week less than 1,500 home purchasers are participating. There is approximately $12 million still available for income-qualified home buyers.

You do not have to be a first-time buyer to participate. All tax credit funds are available on a first-come, first-served basis.

In the face of a more austere budget for 2011, Governor Jay Nixon is “slowing down” MHDC’s process of awarding tax credits. His goal is to cut the state’s 2011 budget $350 million and gain legislative approval by the end of this fiscal year on June 30.

Under the HOPE program MHDC provides incentives up to $1,750.  Up to $1250 is available to pay the first year property taxes for income-eligible Missourians who buy a new or existing Missouri home after Jan. 1, 2010.

An additional $500 is available for “green” homes or energy-efficient improvements. Homeowners who bought a qualified newly constructed energy efficient home or bought an existing home and remodeled or purchased items, such as Energy Star® appliances, to make the home more energy efficient can apply for the additional money.

In the St. Louis metro the one- to two-person maximum gross household income qualification for the St. Louis MSA counties of Franklin, Jefferson, Lincoln, St. Charles, St. Louis City, St. Louis County, and Warren is $67,900. For a 3+ person household the maximum gross income is $78,085. In MHDC’s designated targeted areas the maximums are $81,480 and $95,060 respectively.  For further information, go to the MHDC website:   www.mhdc.com

St. Louis Mortgage Interest Rates – June 30, 2010 *

  • 30-year fixed-rate mortgage 4.50% no points
  • 15-year fixed-rate mortgage 4.125% no points
  • 5/1 adjustable rate mortgage 3.625% no points
  • FHA/VA 30-year fixed rate mortgage 4.75%
  • Jumbo 5/1 ARM 4.125% no points
  • Jumbo 15 year fixed rate mortgage 4.625%

For more information or if you have questions on mortgage rates in St. Louis you may contact me by phone at my direct line, (314) 372-4319, email at rfishel@paramountmortgage.com or you can visit our company website at http://www.paramountmortgage.com.

 

 


*Note- The above rates are based upon a typical sale price of $187,500 with a 20% percent down payment leaving a loan amount of $150,000 to a borrower with a 720 credit score for a loan with no discount points charged. Rates and terms will vary depending upon loan amount, home value, credit and income of borrower.

This information is provided by this author and this site for informative purposes only and is not warranted or guarteed in any way.