Homes For Sale

The end of the world came and went last week, and we are still standing. The biggest economic concern remains tied to the state of European economy, and Greece is now at the edge and tipping, again. If Greece needs a renegotiated bailout, as expected, there are several other countries that will step back in line for another shot at getting it right. This means that the US, even with all of our economic problems, is the safest alternative, and the flight to safety trade has been in effect over the last week, keeping US treasury rates and by extension, mortgage rates low.

Most of the economic data released last week was soft. The Empire State and Philly Fed manufacturing surveys showed declining growth in May. Industrial production was lower, at least partly due to shortages from supply chain issues related to the earthquake in Japan. The housing market is still weak. Home starts decreased again last month. This is obviously bad news for the economy as it takes out all the jobs that are generated by new home production, but it also holds the key to an eventual recovery. With so few new homes being built now, the supply and demand is based almost entirely on existing homes. Right now there is still too much supply based on too many homes being built in the boom years, but as our population continues to grow and new people come into the job market, at some point supply will be absorbed by the increased demand. The key is finding a way to deal with all the foreclosures and distressed homes on the market. Foreclosure activity dropped to a 40 month low last month according to RealtyTrak, but this was mostly a result of delays in processing foreclosures rather than any real recovery in the housing market. But again, there are some silver linings among the dark clouds. This is a buyers market, and for buyers who are qualified and ready to buy there are exceptional deals available, and affordability is high.

Here are the current Chicago Illinois Home mortgage rates for an A+ (740 Fico or above), full doc single family home purchase or rate/term refinance on a 45 day rate lock, with 0 points, and no origination fee, best FHA rates assume a 660 Fico score, but loans are available with credit scores as low as 580. Mortgage rates in other states may be slightly different, give me a call and I will give you an accurate quote for your particular situation. The conventional and FHA rates are based on the highest conforming loan amounts, which give the best pricing. Again, there are many factors which affect mortgage rates and your ability to be approved for a loan, including credit scores, property type, amount of down payment and a number of other factors. These rates may not fit your situation and this is just a sample of the programs that are out there. If you would like a quote for your personal situation, or to get pre-approved for a mortgage, give me a call or contact me (Illinois mortgage company) and I will take the time to find the rate and program that is best for you:

Conventional loans up to $417,000

30 year fixed rate 4.625% 4.787% APR 15 Year fixed Rate 4.00% 4.174% APR 5-1 A.R.M. 3.25% 3.476% APR

For Jumbo loans over $417,000

30 Year Fixed Rate* 5.25% 5.368% APR

*(Another option is to break your Jumbo loan into 2 parts a conventional to the limit of $417,000 and a HELOC or fixed second mortgage for the rest. The blended rate is usually much better than a single loan would be.)

5-5 A.R.M. ** 3.875% w/ .5 points 3.987%** APR 5-5 A.R.M. ** 3.625% w/ 1 Point 3.768% APR

** 5-5 ARM is fixed for first 5 years, with 2/6 caps it can’t go more than 2% above the start rate for the next 5 years. 2% cap for next 5 years – so a blended rate over 10 years is no more than 1% over the start rate. Super Jumbos available.

FHA LOANS 3.5% down payment FHA Maximum varies by County

FHA 30 year fixed 4.50% with 1 Pt 5.042% APR FHA 30 year fixed 4.75% with 0 Pts 5.099% APR FHA 5-1 ARM 3.875% with 1Pt 4.268% APR FHA 5-1 ARM 4.125% with 0 Pts 4.297% APR

FHA APR reflects 3.5% down payment and the effect of mortgage insurance on the loan. Call for information on no-cost FHA streamlined Refinances

FHA 203K Rehab Loans Call for Current Quote – FHA 203k Rehab and Renovation loans are now available as 30 year fixed or 5-1 ARMs.

VA Veterans Administration 0 Down Loans

VA 30 Year Fixed Rate 4.625% with 1Pt Origination 4.937% APR VA 30 Year Fixed Rate 4.75% with 0 Pts 4.896% APR

These are just a few of the mortgage programs and mortgage rates available. Which option is best for you depends on your own specific goals and needs. If you have any questions or want to go over your situation in depth, let me know how I can help.

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