Mortgages

Published by Michelle on 05 Jan 2011

Facing a Short Sale Situation…Don’t Hide, Call Me!

First of all, what is a short sale?  A short sale occurs when a homeowner owes more on their mortgage(s) than the market value of the home.  It’s  similar to being “upside down”  on your car. 

Please understand that there are options available.  The worst thing to do is to be in denial and hide from the situation.  If you can keep making your monthly mortgage payments and can afford to ”ride out the market”, that would be the best option.  However, if you need to move because of a life change or you simply can not afford to keep making payments, then you need to contact a Realtor who has experience and can assist you with the short sale process. 

Everyone’s situation is unique.  If you don’t know who to contact or how to start the process, please contact me for a free consultation.  I’d be happy to explain the process and arm you with the information you need to make an educated decision.  If you live outside the Harrisburg area, I can put you in contact with a Realtor in your local market who has expertise in dealing with short sales and foreclosures.  I can be reached at Michelle@HarrisburgHouses.net or (717)623-8508.

Published by Michelle on 10 Dec 2010

Fannie Mae, Freddie Mac & Several Lenders to Temporarily Suspend Foreclosures

From December 20 to January 3, Fannie Mae, Freddie Mac and several big lenders will suspend foreclosures and evictions on occupied single family and multi-family dwellings.  It’s unclear as to how many households this temporary ban will effect but it’s definately a gift to those who were scheduled to be foreclosed upon. 

Nationally, it’s been reported that as high as one in eight mortgages are in default or foreclosure.  The good news is that Pennsylvania’s foreclosure rate is still relatively low compared to the national average. 

If you find yourself in a financially distressed situation and need to sell your home before it foreclosed upon, please contact me at Michelle@HarrisburgHouses.net or (717) 623-8508.

Published by Michelle on 07 Aug 2010

Mortgage Interest Rates Fall Again

Interest on a 30-year fixed loan reached a new low of 4.49%, compared to 4.54 % last week.  One year ago rates were hovering around 5.22%.  

If you’re looking for a 15-year fixed loan, the current interest rate is 3.95%, down from 4% last week and 4.63% one year ago. 

If you’re interested in buying a property, please contact me today so you can get pre-approved and under contract while the rates are historically low.

Published by Michelle on 24 Jun 2010

Need 100% Financing (or Less)? Looking to Move to a “Rural” Area in Central PA?

If you’re looking to buy a home but need up to 100% financing, I can help!   This program is geared toward, but not limited to, first time home buyers. 

There are specific requirements that the property and borrower must meet.  Some include:

- Property must be located in a rural area.

- Property must be HUD approved (meaning, a HUD appraisal will be required)

- Income limits apply.

For more information, please give me a call at 717-623-8508.  I can assist you in securing a FREE pre-approval to see if you qualify for this program.

Published by Michelle on 18 May 2010

Effective June 1, 2010 – A New Credit Report Will Be Pulled Prior to Closing

Effective June 1, Fannie Mae announced that a new credit report will be pulled prior to closing.  Mortgage underwriters will be looking to see if new credit was opened or applied for from the date of your mortgage application.  If the Buyer’s credit score changes or if new credit lines are established, the file could be sent back to underwriting for further review and possiblity delay settlement.  Or, worst case scenario is that your mortgage application can be denied.   

After you enter an Agreement of Sale, do NOT apply for  new credit or make any “significant purchases”.  By doing so, you will put your mortgage loan at risk.  There will be plenty of time AFTER your loan closes to make those purchases.

If you have any questions, please contact me at Michelle@HarrisburgHouses.net.   

Published by Michelle on 19 Mar 2009

30 Year Mortgage Rates Near Record Low

30 year mortgage rates fell by about 3/8 percentage point this week to 5%. This is close to a record low and should set up rates to stay low throughout the year. The low rates make 2009 a great year to buy a home.

Published by Michelle on 23 Mar 2008

Mortgage Lenders Are Playing Hard Ball While Central PA Remains Stable

According to an article published by The Associated Press in The Sunday Patriot News (March 23, 2008), mortgage lenders are making it harder for potential borrowers – even borrower’s with good credit. Borrowers who can not afford to put the traditional 20% downpayment on a home require the backing of a mortgage insurer.

In recent weeks, mortgage insurers have flagged nearly 25% of the nation’s zip codes where they refuse to insure home loans. The following states have experienced the highest foreclosure rates and the worst price declines therefore the entire state is blackballed for some mortgage insurers: Arizona, California, Florida, Michigan, Nevada, and Ohio.

On the flip side, in central Pennsylvania, the housing market continues to fare better than most. In 2007, home prices continued to rise and foreclosure files increased only moderately.

What does this mean for new home buyers? It can mean that higher downpayments, a more thorough review of credit scores, among other requirements. In areas where the home values are declining, more restrictions are in place however regions such as central Pennsylvania are not immune although home values are rising.