Payments On Typical St Charles County Home Over 13 Percent Cheaper Today Than Year Ago

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!

St Charles County Existing Home Sales – Past 13 Months

(click on chart for live-interactive chart)

St Charles County Existing Home Sales - Past 13 Months

Mortgage Interest Rates Hit All-Time Low!

Mortgage interest rates hit a record low this week with an average interest rate of 3.29% on a 30-year fixed-rate mortgage according to the Freddie Mac Primary Mortgage Market Survey.  As the chart below shows, interest rates came close to this level at the end of 2012 but then quickly shot up to over 4.5% shortly after.

Now is the time to buy or at least refinance!

Anyone that has been thinking of buying a home should, if able, shift into high geat and find one now to take advantage of the low rates and the increased buying power that comes with it.  The first step would be to get yourself pre-approved and, for that, I would recommend Michael McCarthy with Flat Branch Home Loans…he’s great and our firm does a lot of business with him.  You can find his info at STLBestLender.com.  If you a homeowner with a mortgage and no plans to move, I would also suggest you get in touch with Mike to see how much money you can save by refinancing your existing mortgage at a lower rate.

Mortgage Interest Rates – 30 Year Fixed-Rate

(click on chart for live, interactive chart)

Mortgage Interest Rates - 30 Year Fixed-Rate

 

Mortgage Interest Rates….How low can they go??

For quite a while now we have enjoyed the positive effects on the real estate market from low mortgage rates but it looks like it’s going to get even better!  Yesterday’s announcement by the Fed of the emergency step of lowering the benchmark U.S. interest rate by one-half of one percent, in an effort to offset the negative effect tot eh financial markets from the coronavirus will likely lead to even lower mortgage interest rates.

What’s the connection between the federal funds rate and mortgage interest rates? This is something often asked not only by homebuyers but is even within the real estate community as since the Federal Reserve doesn’t “set” mortgage rates, the connection is not always clear.  I’m not an expert in this area by no means, but I have a decent understanding of it and will share it from the perspective of the most popular home mortgage, the 30-year fixed-rate mortgage.  First, we have to understand where the money for those mortgages comes from.  It comes from investors, investors that compare an investment in 30-year mortgages to other comparable investments.  One of those comparable investments would be the 30-year treasury.

St. Louis Mortgage Rate Update; Fannie Mae’s Latest Housing Survey

Fannie Mae’s April 2012 National Housing Survey indicates consumer attitudes toward homeownership, the economy, personal finances, and home prices continuing to improve.

SURVEY HIGHLIGHTS

The Economy and Household Finances Continue reading “St. Louis Mortgage Rate Update; Fannie Mae’s Latest Housing Survey

St. Louis Mortgage Rate Update; What Appraisers Look For When Determining a Home’s Value?

The primary indicator of value for residential real estate is comparable sales.  The appraiser researches the market to gather information pertaining to sales, listings, pending sales that are similar to the subject property, and verfies this information is correct. The appraiser actually already has a good idea of the property’s value by the time they have scheduled an appointment to stop by the property.

Since the appraisal provides half the weight in any credit decision involving the security of real estate, the appraisal should be done by a qualified, licensed appraiser whom is familiar with your neighborhood, and the type of home you are buying, selling or refinancing. Continue reading “St. Louis Mortgage Rate Update; What Appraisers Look For When Determining a Home’s Value?

St. Louis Mortgage Rate Update; Refinancing Homeowners Reduced Debt In Fourth Quarter

Freddie Mac recently released their fourth-quarter refinance analysis and it shows that 85 percent of homeowners who refinanced their mortgages during the fourth quarter of 2011 maintained or reduced their principal balance by paying-in additional money at the closing table. Frank Nothaft, Freddie Mac’s vice president and chief economist, said savvy homeowners are taking advantage of some of the lowest fixed-rates in more than 60 years to lock in interest savings.

According to Nothaft, the typical borrower who refinanced during the fourth quarter reduced their interest rate by approximately 1.4 percentage points. During the fourth quarter, 37 percent of homeowners who refinanced their mortgage maintained about the same loan amount and 49 percent reduced their principal balance. The percentage of cash-in borrowers was the highest in the 26-year history of the analysis. Continue reading “St. Louis Mortgage Rate Update; Refinancing Homeowners Reduced Debt In Fourth Quarter

St. Louis Mortgage Rate Update; Survey shows 8 in 10 people still say home ownership is a good investment

In a presentation given at the International Builders Show, Jill Waage, Editorial Director for Home Content for Better Homes and Gardens revealed survey results about consumer attitudes towards home ownership, upkeep and renovations, design and personalization, and more. A primary point revealed in the presentation shows that, despite continuing economic uncertainty, consumer thoughts toward home ownership remain strong with 8 in 10 saying home ownership is still a good investment and an important part of the American Dream. Continue reading “St. Louis Mortgage Rate Update; Survey shows 8 in 10 people still say home ownership is a good investment

St. Louis Mortgage Rate Update; What are "loan-level" price adjustments?

“Ballparking” mortgage rates just is not the same anymore. Home buyers who obtain online quotes from popular websites and “shopping” mortgage rates on the phone 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.

The government has taken the example of risk-based pricing from the auto insurance industry.  “Riskier” car owners pay higher rates for insurance, e.g. a driver with a few accidents and speeding tickets in their past will pay a higher premium than the driver with a clean driving record.  Continue reading “St. Louis Mortgage Rate Update; What are "loan-level" price adjustments?

St. Louis Mortgage Rate Update; The Do’s and Dont’s when financing your home


As the mortgage industry continues to adjust to new financial regulations, it is more important than ever to ensure that the financing (or refinancing) of your 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.
By following the simple guidelines below, you are assured a smooth and error-free closing. Continue reading “St. Louis Mortgage Rate Update; The Do’s and Dont’s when financing your home

St. Louis Mortgage Rate Update; VA Loans Offer Great Terms to Veterans

Members of the armed forces who have generally served for two years in peace time, or 90 days during conflict are eligible for a guaranteed VA home loan. Members of the National Guard or Reserves who have served for six years are eligible. Widows of veterans are eligible if the veteran died in a service-related incident. There are special circumstances for some veterans regarding eligibility. A Certificate of Eligibility and DD214 are required. Continue reading “St. Louis Mortgage Rate Update; VA Loans Offer Great Terms to Veterans

St Louis Mortgage Rate Update; Don’t be afraid of new home loan rules

After the problems we have seen over the past few of years in the real estate, mortgage and banking industries, it is not surprising we have seen significant changes brought about which makes it more challenging for a home-buyer to obtain a mortgage. Some of the changes borrowers see when they attempt to obtain a mortgage to buy a home or refinance their existing mortgage include: Continue reading “St Louis Mortgage Rate Update; Don’t be afraid of new home loan rules

St Louis Mortgage Rate Update; FHA good alternative for many home buyers

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 “St Louis Mortgage Rate Update; FHA good alternative for many home buyers

Slash Your Long-Term Home Interest Costs

As mortgage rates have dropped this year, so have the costs of homeownership. At every given loan size, bargain-basement interest rates have brought monthly mortgage payments to levels never seen in history.

It’s a great time to buy a home. It’s an even better time to refinance.

This isn’t cheerleading. This is fact. As a homeowner, your “total cost of homeownership” is tied to your mortgage. The higher your mortgage rate, the more interest you pay over time. And regardless of your mortgage interest tax-deductibility, over 30 years, mortgage interest accrues into something fierce.

Continue reading “Slash Your Long-Term Home Interest Costs

MHDC’s CAL Cash Assistance loan rate is now 4.5 percent!

First-time home buyers receive a forgivable 3% cash assistance loan for down payment and closing costs.

Program Highlights:

  •  3% Cash Assistance Loan (CAL) can be used for down payment and closing costs.
  • CAL is forgivable after 5 years of occupancy.
  • 30 Year Fixed Rate Mortgages & Competitive Rates.
  • CAL can be used with FHA, VA and USDA Rural Development loan programs.
  • First time home buyer requirement only applies to the last three years.
  • Loan is assumable for an MHDC-qualified borrower in an FHA, VA or USDA-RD loan program.
  • Eligible owner occupied properties include: Single-Family Detached, Duplexes, Semi-Detached, Condominiums, Town Homes. Continue reading “MHDC’s CAL Cash Assistance loan rate is now 4.5 percent!

What you need when applying for a home mortgage; St. Louis Mortgage Interest Rate Update

Having been in the mortgage industry for a number of years, I have found a lot of my “issues” when it comes to underwriting was a result of missing something at time of application.   The following is a quick rundown of items that should be collected at application: Continue reading “What you need when applying for a home mortgage; St. Louis Mortgage Interest Rate Update

What is a credit score? What affects my credit score?; St Louis Mortgage Interest Rate Update

Credit Scores have and always be a hot topic in any economy.  Recently, Jim Gallagher of the St. Louis Post Dispatch wrote an article regarding consumers thatfork over $1 billion a year to the credit agencies and credit monitoring services to obtain their credit scores.” But the scores they get probably aren’t the ones a lender will use to judge their credit worthiness. Continue reading “What is a credit score? What affects my credit score?; St Louis Mortgage Interest Rate Update

St. Louis Real Estate News – St Louis mortgage rates drop again this week remaining below 5 percent

Paramount Mortgage Company - St LouisSt. Louis mortgage rates dropped this week to almost record lows according to St. Louis-based Paramount Mortgage Company.

Lower interest rates, low prices and the extension and expansion of the home-buyer tax credit should be pretty tempting to buyers out there.

St. Louis Mortgage Rates – November 17, 2009 * Continue reading “St. Louis Real Estate News – St Louis mortgage rates drop again this week remaining below 5 percent

St. Louis Real Estate News – St Louis mortgage rates drop this week below 5 percent

Paramount Mortgage Company - St LouisSt. Louis mortgage rates dropped this week to almost record lows according to St. Louis-based Paramount Mortgage Company.

Lower interest rates, low prices and the extension and expansion of the home-buyer tax credit should be pretty tempting to buyers out there.

St. Louis Mortgage Rates – November 10, 2009 * Continue reading “St. Louis Real Estate News – St Louis mortgage rates drop this week below 5 percent

St. Louis Real Estate News – St Louis mortgage rates drop this week

Paramount Mortgage Company - St LouisSt. Louis mortgage rates dropped this week according to St. Louis-based Paramount Mortgage Company.

Low interest rates and the homebuyer tax credit, which is close to getting extended beyond the current expiration date of November 30th, should be tempting to buyers.

St. Louis Mortgage Rates – November 4, 2009 * Continue reading “St. Louis Real Estate News – St Louis mortgage rates drop this week

St. Louis Real Estate News – St Louis mortgage rates inch up this week

Paramount Mortgage Company - St LouisBy: Dennis Norman

St. Louis mortgage rates inched up a little this week according to St. Louis-based Paramount Mortgage Company.

Between these low rates and the $8,000 homebuyer tax credit that is available until Nov 30th, I would think there is a lot of incentive for a first-time buyer to buy a home now if they are in a position to do so.

St. Louis Mortgage Rates – October 27, 2009 * Continue reading “St. Louis Real Estate News – St Louis mortgage rates inch up this week

St. Louis mortgage rate drop to 5 percent this week for a 30 year fixed rate mortgage

Paramount Mortgage Company - St LouisBy: Dennis Norman

Mortgage interest rates are already low, but dropped a little further this week, according to Paramount Mortgage Company. 

Between these low rates and the $8,000 homebuyer tax credit that is available until Nov 30th, I would think there is a lot of incentive for a first-time buyer to buy a home now if they are in a position to do so.

St. Louis Mortgage Rates – October 20, 2009 * Continue reading “St. Louis mortgage rate drop to 5 percent this week for a 30 year fixed rate mortgage

New! Local St. Louis Mortgage Rates

Dennis Norman

Dennis Norman

By: Dennis Norman

In the past I have been doing weekly posts with updated current mortgage rates based upon national data from either Freddie Mac, Fannie Mae or the Mortgage Bankers Association.  However, just like real estate, mortgage rates are “local” to some extent and do vary in different markets. 

In an effort to help people in the St. Louis metro area get a more accurate picture of what mortgage interest rates are doing here, not to mention data that is accurate up to the minute I publish rather than delayed several days or a week as the national data is, I wanted to find a local source for timely, accurate rate information and have done just that. Continue reading “New! Local St. Louis Mortgage Rates