“Only one who devotes himself to a cause with his whole strength and soul can be a true master. For this reason mastery demands all of a person.”
Albert Einstein
1879-1955, Theoretical Physicist, Philosopher and Author
From the authors of The Secret,
“Trust your hunches. They’re usually based on facts filed away just below the conscious level.”
Dr. Joyce Brothers
Psychologist and Television Personality
Dr Joyce Brothers
New FHA Lending Policies
Recently, the Federal Housing Administration (FHA) announced some lending changes. If you or someone you know is considering an FHA loan, some of these changes may affect you. Here’s a brief rundown of the major changes.
Increased mortgage insurance – The mortgage insurance premium (referred to as private mortgage insurance by many people) will be increased from 1.75% to 2.25%. This change will add some cost to purchasing a home, but will not overburden consumers since the mortgage insurance is paid over the life of the loan, rather than upfront at closing.
New down payment and credit score requirements – According to the new policy, homebuyers who have a credit score of at least 580 may still be able to purchase a home with 3.5% down, but those with credit scores of less than 580 will be required to put down at least 10%.
Reduced seller concession – The seller will now only be able to offer the homebuyer 3% to help defray closing costs, as opposed to 6% under the previous policy.
The bottom line is that the changes will impact some homebuyers more than others. But in the end, the FHA is still committed to providing affordable home loans.
Napoleon Hill
“The starting point of all achievement is desire. Keep this constantly in mind. Weak desires bring weak results, just as a small fire makes a small amount of heat.”
Napoleon Hill
1883-1970, Author of Think and Grow Rich
Insight of the day brought to you by The Cobbin Group your Edmonds Realtors
One of the biggest difficulties many first-time home buyers face is a lack of down payment and the necessary funds for closing costs. However, even with the widespread availability of “no-money-down programs” evaporating in the credit crisis, one national no-down payment program still remains: USDA Rural Development home loans.
Guaranteed by the USDA (United States Department of Agriculture), this program might make you think that you have to buy farmland or live “in the country” to qualify, but this is often not the case. In fact, you might be surprised to see just how many neighborhoods actually do qualify as rural development areas. For this program, the term “rural” really applies to those areas with a lower population or fewer homes, not necessarily those areas and neighborhoods far outside of the city.
There are several benefits of the USDA loan program besides no money down. The program also does not require private mortgage insurance, and the seller is allowed to pay all of your closing costs and pre-paid items up to 6.00% of the total sales price of the property. And while this is great news for first-time home buyers, it’s important to note that you don’t have to be a first-timer to qualify for a USDA loan.
Other than the location of the property you’re seeking to buy, there is one other limitation to this valuable program that you must consider: your income. Luckily, however, these numbers have recently increased to allow more potential buyers to take advantage of this special program. For households in non-high cost areas, with up to four people, the income limit is $70,750. In households where 5-8 people reside, the income limitation is $93,400. These income limitations are guidelines and, in some cases, may be exceeded.
To find out more about USDA loans, give The Cobbin Group a call. We can point you in the right direction an answer as to whether you qualify for this program in just a few minutes.
Edmonds Real Estate
If your looking to live in one of the most sought after area in Snohomish Co Check out this glorious property in Woodway 4Br 2.50 Ba 3600sf over 23,000sf
Edmonds New Logo 2010
Edmonds Chamber News & Happenings
Sponsored by:
The Edmonds Kiwanis Club
Presented at:
Edmonds Chamber of Commerce March Luncheon
Emonds Pink House
You’ve probably heard that the Fed is buying up billions of dollars worth of Mortgage-Backed Securities. But how does this really impact home loan rates and your mortgage?
Basically, the Fed’s actions provide a demand for Mortgage-Backed Securities, which should help keep the ceiling on home loan rates from moving much higher in the foreseeable future. That’s good news for home buyers who are looking to purchase a home at a bargain price, as well as those who can benefit from a refinance.
However…the Fed’s actions do not necessarily mean home loan rates will move significantly lower.
It all depends on which Bond coupons the Fed purchases. If they purchase higher rate coupons–as they have been doing–their continued purchasing will likely keep a lid on rates, but won’t necessarily push them significantly lower.
The fact is, rates are within inches of all-time historic lows, so don’t wait to miss a great opportunity to purchase the home of your dreams, or get more money back in your budget by a smart refinance.
With a short conversation we can talk over the options, so you can rest assured that you’re making smart decisions on your home financing. We are the The Cobbin Group agents who can decode the market for you. The Cobbin Group.com of Edmonds Wa
Hey don’t invest in real estate now! Why you might save money later if you wait until rates go up not! Just when you thought it couldn’t get any better to own a home in Edmonds it did. Your better off now than this time last year to purchase a home in Edmonds Wash town by the sound the average cost for a home in this bedroom community as of last month was $349,000 that’s a first time buyer price. Rates are going to go up according to economist.
The first reason is that the markets are currently in a very positive mood about the near-term future of the economy. Manufacturing seems to be turning up along with employment numbers and consumer confidence. Personal income is growing slightly. The numbers continue to please investors, and the stock market has finally gotten into the spirit of the higher numbers again.
A better future for the stock market and the overall economy generally means that interest rates begin to rise, as the stimulus of lower rates gives way to the foot-gently-on-the-brakes of higher rates. Though analysts assure us daily that inflation won’t begin a serious rise for many months, there is still a consensus that an improving economy will cause the Federal Reserve to cease its support of lower interest rates, and perhaps even raise the fed funds rate well before it was recently expected to.
The second reason that 10-year note rates are rising so convincingly is closely related to the first. As interest rates climb, existing Treasury notes providing lower yields to their investors become less valuable. Those investors, therefore, very often raise rates further by selling off their Treasury securities when they become convinced that the interest rate trend is turning and that their holdings are about to lose value.
We have noted a narrowing spread between the 10-year note and the 30-year average mortgage rate, suggesting that mortgage rates may be about to rise. Even more significant is the spread between 2-year notes and 10-year notes, which makes up what is called the “yield curve.” A year ago, that spread was 1.27%. Now, though, the spread has widened very significantly to 2.81%. (Before the recession, the yield inverted rather prophetically, with short-term rates lower than long-term rates, a condition that sometimes precedes an economic downturn.) So as I said wait before you purchase it could cost you not!! The Cobbin Group /Keller Williams Realty google it and will decode it!
