Mortgage Rates Remain Low

Mortgage rates improved Tuesday and remain low. Lenders are overwhelmed with applications and are not underwriting as quickly as in the past. Credit continues to be tightened as more programs disappear or require higher credit scores than previously. Consult a trusted mortgage advisor when considering a refinance or new home purchase.

$8000 Tax Credit

You can now receive an $8000 tax credit for purchasing a home between Jan. 1, 2009 and Dec. 1st 2009. You can receive the credit when you file your 2009 taxes. You can also receive it sooner - consult your tax advisor. You can claim the credit if you have not purchased a house in the last three years. As long as the house is more than $80,000 you can claim the full credit. If you have not paid $8000 in Federal taxes you would get a refund or in other words a check sent to you. Your income needs to be less than $75,000 or $150,000 for you and your spouse to claim the full credit. Neither of you can have owned a home the past three years. $8000 to buy a home! Just think of it!

First Time Home Buyer Tips

Are you a first time home buyer? How do you find a house? How do you get a loan? The first step is to meet with a mortgage lender and get pre-qualified. Gather 2 years of Federal Taxes, a current pay stub, any 401K statements and 2 months of bank statements. All the statements should be complete and current. You will fill out an application listing employment and residence history so you should be prepared with names and addressees and dates. The lender should provide you with a copy of your credit report.

Think in terms of what you can afford. Let's say for example you earn $45,000.
This is $3750 gross a month. Your maximum payment for housing should be about $1400.
This figures includes the mortgage, taxes, homeowners and mortgage insurance. So say for example you find a house you like for $139,000. This may be affordable. Let's say you choose FHA financing and put down 3.5%. Your loan could be around $760 a month. Then you add 1/12 of taxes and homeowners and any monthly mortgage insurance. If taxes are 3100 annually and insurance is $500 annually then add $258 monthly for taxes and $42 monthly for homeowners insurance. Figure $60-80 a month for mortgage insurance.

Your new payment on that $139,000 house with 3.5% down or $4865 down would be $760 plus $258 for taxes plus $42 for insurance plus say $60 for mortgage insurance. In other words your housing payment would be $1120 a month. This would be affordable.
This payment would be 30% of your gross income. If you have big payments on car loans or other loans you may want to trim those so you can afford a house.

You can search for homes on the Internet at WI.HOMES.com My recommendation is to find a good experienced agent who works with buyers. If you would like any agents contact information please let me know. 414-416-9194 Good Luck!

FHA FINANCING

A 30 year fixed FHA loan for purchase or refinance today was available at 5.5%. To qualify you should have a current FHA loan or have about 5% or more equity in your property. Generally, homeowners or renters with credit scores over 580 may qualify provided they can verify income and not have any bankruptcy open in the past two years. For more information how you can take advantage of FHA financing to help you achieve your goals contact Loan Officer Pete Cannon at Great Lakes Mortgage Corp. at 414-416-9194. On a FHA purchase you just need 3.5% as a down payment.

APR 5.61%
AN EQUAL HOUSING LENDER

Where Is The Money Going?

President Obama is to sign the stimulus bill in Denver today. The White House has set up a web site to track where the money is going. http://www.recovery.org

Plan To Pass

Looks like Congress will wrap up the voting on the stimulus plan so they can enjoy their 3 day Holiday weekend since Monday is a Federal Holiday, Presidents Day. The $15,000 Homebuyer credit may not be part of the plan however if you buy a new car the sales tax will be deductible. If you would like to learn about the current $7500 First-Time Homebuyer Credit and receive IRS Form 5405 to claim it let us know and we will be glad to provide you with the form.

Market Update

We suspect mortgage rates will be higher Wednesday morning. We locked many loans on Tuesday after the Treasury Secretary spoke and before the Dow tumbled nearly 382 points. Work with us and you will save money on your mortgage. Guaranteed. We cannot predict the future direction of rates however in the short term day to day we can help you benefit by getting the best possible rate at the time.

Mortgage Rates Improve Tuesday

Mortgage rates improved Tuesday as the stock market tanked after Treasury Secretary Tim Geithner spoke on a public private partnership plan to add liquidity to the credit markets. Apparently some on Wall Street were not too impressed and feared it was too little too late. The Dow was down 276 points in the late morning. A 5.125%
30 year mortgage was available now from us.

APR 5.19%

President To Speak

President Obama will address the nation tonight and Treasury Secretary Timothy Geithner is scheduled to speak Tuesday and unveil a solution to the banking crisis and stimulus program. The next 24 hours are very important for all of us and especially for those looking at purchasing or refinancing a home in the near future. Stay tuned.

$15,000 Cash For You

The Senate passed a bill which would give home buyers - not just for first timers - a $15,000 tax credit for purchasing a home. The benefit would be in affect for one year after the economic stimulus act is signed. This could be a great opportunity for you now to purchase a home. Any owner occupied single family home of $150,000 or more would qualify for the full $15,000 benefit otherwise the credit would be up to 10% of the purchase price.

Mortgage News

Rates have been off a bit lately with the 30 year FHA mortgage now at 5.5%. An FHA loan can be used in the Milwaukee area up to about $281,750 in several counties and up to $365,700 in Kenosha county for a single family. Loan limits are higher for 2-4 units. There are different loan limits for different counties. Check with us and we will let you know.

There are no income limits on FHA financing. In other words earning a large income does not disqualify you. One advantage of FHA loans in our market now is that you do not need a large amount of equity to refinance with FHA. Some people discover that they may have less equity than they thought based on a recent lack of sales in their neighborhood or the uniqueness of their property. This is when an FHA loan really works well. Contact us for more information. We may be able to help you. 414-416-9194

The current conforming mortgage loan limit is up to $417,000. Higher than that rates are higher.

30 Year at 5.375% Today

A 30 year conventional mortgage is available today at 5.375% on a loan amount over $100,000. Call for details. 414-416-9194

APR 5.398%