Financing
{ Tuesday, February 7th, 2012 }
$1500 Down, And You Can Buy An Inman Park Condo
No, that was not a joke. A tad bit dramatic? Perhaps. But it’s true folks, it’s all true.
I learned recently from my friends at The BeltLine Team that The Brickworks in Inman Park has been added to their list of developments eligible for the BeltLine Tax Allocation District. Read all about the nuts and bolts- it’s a very real program that’s enabled a bunch of lucky Atlanta home buyers to score sweet deals all along the BeltLine.
Brickworks, of course, is no stranger to these here pages. You can probably recall when I professed my love for my one-bedroom listing there, and certainly you’ll recall all the good things that I had to say about the Home Owners Association. Now, with the BeltLine program in place, the deal just got a whole lot sweeter.
Whether you’re thinking about living in Inman Park, on the BeltLine, or, in a pristine condo… you should get on this. Stat. Contact me directly for more details…
{ Tuesday, July 26th, 2011 }
Lender Roundtable: FHA Loans 101
When it comes to home financing, FHA loans are all the rage. They’re hugely popular, especially amongst first time home buyers: putting 3.5% down on a home purchase makes it an option that’s hard to ignore for many. I’ve convened some of the top mortgage minds in Atlanta to answer the question: Why use an FHA loan?
Answers below, after the jump:
{ Tuesday, December 28th, 2010 }
Have Mortgage Rates Hit Bottom?
Mortgage rates may not be the most exciting New Year’s party conversation, but they definitely warrant some attention for both current homeowners as well as those that are thinking about buying a home in 2011. After years of steady interest rate declines, we might have hit bottom. According to a recent article in the New York Times, mortgage rates may start to climb in 2011.
Considering that I’ve used the words “might” and “may” in consecutive sentences, I’d encourage you to read the article in full. One nugget that I thought was particularly interesting- especially for people who have put off refinancing or purchasing a home because they were waiting for rates to drop further:
Again, not great conversation fodder for your New Year’s fete, but food for thought if you’re thinking about making moves in 2011.
{ Wednesday, October 6th, 2010 }
Changes To FHA Financing
Home buyers love FHA loans for one simple reason: they only require a 3.5% downpayment. So, it’s a pretty big deal that the government agency that oversees the program, HUD (Department of Housing and Urban Development), has just enacted major changes. From Shannon Bagshaw, mortgage pro over at Loan South:
HUD has made their official announcement. Mortgage Insurance Premiums on all FHA loans will be affected. The upfront mortgage insurance is being reduced from 2.25% to 1.00%. The monthly premium will be increased from .55% to .90%. The net result is an increased monthly payment and making the program much more comparable to conventional financing from a cost standpoint.
Below is an example of the impact of the new FHA premiums. The premiums will be effective for all case numbers ordered after October 4th.
| Monthly Payment: Principal, Interest and Mortgage Insurance | ||
| Loan Amount | Current FHA | New FHA |
| $100,000.00 | $563.59 | $586.20 |
| $200,000.00 | $1,127.16 | $1,172.40 |
| $300,000.00 | $1,690.75 | $1,758.61 |
{ Monday, May 3rd, 2010 }
Housing Market Update
Hot off the presses from Shannon Bagshaw at LoanSouth, here’s a macro-view at some housing market vitals. Some good information to help you gain a little “trees from the forest” perspective:
Home Prices Rise Nationwide for First Time:
The Case-Shiller 20 city and 10 city indexes increased year-over-year for the first time since December 2006 which is considered the beginning of the housing slump.
The index rose 1.4% for the 10 city index and 0.6% for 20 city index. It is first time in over three years that the indexes were above zero. A reading above zero shows price increases.
This housing indicator clearly shows that the housing market is making its way back. That means that this is the year to purchase before the market takes off.
Economy Grows at 3.2%:
The Gross Domestic Product (GDP) for this first quarter grew at a rate of 3.2%. The GDP is our nation’s report card and shows if we growing or shrinking. This is the third straight GDP report that is in positive territory.
The report showed that consumer spending accelerated at a 3.6% rate which was double the 1.6% pace in the 4th quarter of last year. Consumer spending makes up approximately 70% of U.S. economic activity, and it added 2.55 percentage points to GDP last quarter. That is the biggest percentage contribution since 2006.
Manufacturing also continued to show growth as businesses continue to rebuild low inventory levels. This generally leads to job growth which, is the precursor to increased housing demand.
What Happened to Rates Last Week:
Mortgage backed securities (MBS) gained +65 basis points last week which caused 30 year fixed rates to decrease for both government and conventional loans to their best levels in two weeks. MBS pricing increased (which causes mortgage rates to go down) due primarily to Greece. Yes, Greece. With concern about their looming default on their sovereign debt and the subsequent “domino affect” all across Europe, money flew into U.S. treasuries and MBS. This artificial (and temporary) demand helped to push mortgage rates down.
