Starting in February, FHA is relaxing their anti-flipping rule for 1 year. The anti-flipping rule prohibited a property from using FHA financing if it the home was sold within 90 days of the sellers buying the property. The idea behind this was to discourage fraud, as a big percentage of defaulted loans were bought and sold (usually for a much higher price) within a short period of time. In order for this fraud to work, there had to be an organized effort to defraud, this often meant a straw buyer (someone who was paid to pretend to be the buyer) and a dishonest mortgage lender and appraiser. This fraud caused millions of dollars of losses for FHA. Over the last 2 years, FHA, along with mortgage guidelines in general, tightened and HUD put an effort on enforcing their rules, and catching and punishing the offenders. So, a lot of the abuses have already been curbed.

The anti-flipping rule while well intentioned did have some draw backs. For one, the 90 days could be a whole lot more time, the way they days were counted. The clock didn’t start based on the day the purchase (from the seller) was closed, but when it was recorded. And the 90 days wasn’t until the close by the new buyer, but from the date of the new contract to purchase. So if a legitimate investor bought a property and the sale wasn’t recorded for 30 days, which is common, which means he is adding an extra month before he can sell it. This rule was hurting HUD itself, as it is doing its best to turn over its inventory of foreclosed homes, and this rule was slowing down the process. The quicker foreclosures can be sold and bought by buyers who intend to live in them, the better it is not only for the buyer and seller, but also the community.

Some restrictions apply. In order to qualify for the moratorium, the sale needs to be an arms length transaction ( a real sale, with the buyer and seller no related and not working together). If the new sale price is more than 20% higher (which most are) the buyer will need to get a home inspection (which they should plan on getting anyway) and the appraiser has to note that the increase in property value is correct and warranted. This won’t affect most FHA home buyers, but for those buyers who do buy a recently acquired and remodeled home, this means a lot less time and aggravation in getting to their closing.

Peter Thompson 630-479-6424

Illinois Mortgage Rates                   First time home buyer loans

Chicago Mortgage Company

There was some good and some bad news released today, but all the news was good for mortgage interest rates. The good news was that the Consumer Price Index (CPI) a measure of inflation, came in lower than expected. This is good news because mortgage bonds, which mortgage interest rates are based on, lose value when inflation is high. Low inflation means the value stays high, keeping rates low. The bad news was that  the Consumer Sentiment Index was a little worse than expected. If consumers feel good about their personal prospects they are more likely to spend money, stimulating the economy. When they are unsure or feeling bad about their future prospects, they pull back, saving more and spending less. This is bad news for the economy, but good news for mortgage rates. Stocks are having a bad day, too and this means that money rushes out of stocks and flows into mortgage bonds, driving prices lower. We will see if this holds, but for now, rates are great and the trend is improving.

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. 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. 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’ll take the time to find the rate and program that is best for you:

Conventional loans up to $417,000

For Jumbo loans over $417,000

(Another option is to break your Jumbo loan into 2 parts – 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.)

FHA LOANS – 3.5% down payment – FHA Maximum varies by County

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 Quote

VA Veterans Administration 0 Down Loans

Call for information on no-cost VA Streamlined Refinances

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.

Peter Thompson 630-479-6424

Illinois Mortgage Rates                   First time home buyer loans

Chicago Mortgage Company

If you are a first time home buyer just starting to look around and explore your options, you’ve probably  heard that FHA is the way to go. If you have friends or relatives who bought their first home recently, chances are they bought their new home with an FHA loan. FHA is the best and most popular option for most first time home buyers here in the Chicago area, but in many ways FHA still gets a bad rap. On a regular basis I have clients who start the process excited to know they can buy a home they can afford, only to grow hesitant when older friends or relatives tell them they should get a conventional loan. Over Christmas a client’s Uncle told her she was making a mistake and FHA mortgages were only for poor people. Another couple’s Realtor told them not to use FHA for a home with some property damage, and that they would be better going with a conventional loan. In both cases these people were well intentioned, but wrong. Most FHA home buyers are middle class and just starting out, and if the property needs repairs they will have to be taken care of whether it is FHA or a conventional loan.

FHA has grown in popularity because in many cases it is the only option available for most first time home buyers. Conventional mortgages are loans backed by the big GSEs, Fannie Mae and Freddie Mac. Not long ago, when the housing market was booming and home values were skyrocketing, conventional mortgage guidelines were so easy that almost anyone (literally anyone) could qualify for a mortgage. It turned out that letting unqualified people buy over priced homes wasn’t a good idea in the long run, and ever since then, conventional mortgage guidelines have been in a continual tightening process. There are still conventional mortgages available with a 5% down payment, but most home buyers won’t qualify for these loans, and if they do, loan level price adjustments (pricing add-ons) and high mortgage insurance premiums will make the cost prohibitively high. FHA has taken up the slack by offering loan products that first time home buyers can afford and qualify for.

Here are some of the advantages of financing your Chicago area home with and FHA mortgage:

1. Low down payment – FHA requires only a 3.5% down payment. So if you are buying a $200,000 home, the required down payment is just $7,000. With tax refunds in the mail soon, this is a number that is do-able for many young singles and couples.
2. The down payment and all the cash needed to close can come from a gift – If you haven’t been able to save up a down payment, or you are close but still short, you can get all the cash you need from a gift from a relative. We will need to show the paper trail on where the money came from and how it got into your account. Don’t transfer any money until after you consult with your mortgage loan officer.
3. FHA allows up to 6% of the sale price as a seller concession – In addition to the down payment, you will need to have money available for closing costs and to set up the escrow accounts. This comes out to thousands of dollars, more in areas like Chicago which charge a buyer transfer tax (.75% of the sale price here in Chicago). But you don’t need to save up for this or come up with it from your own funds. It is now common with an FHA loan to negotiate for the seller to pay the closing costs. Find out how much your costs are and what you need to ask for before making an offer on the property. You won’t need anywhere near the 6% (you can also use this credit to structure the purchase or lower your interest rate), but this is a great way to save cash when you need it the most.
4. Credit guidelines are more lenient and common sense – FHA is not a sub-prime mortgage, and if you have bad credit you aren’t going to be able to qualify. But most first time home buyers pay their bills on time, but it’s not uncommon that they have had a few dings in the past. Some times they’ve had serious issues they had to overcome. But FHA looks at the big picture, not just a number. FHA doesn’t have credit score requirements, but all the wholesale lenders now require a minimum 620 score. If you have had problems in the past we will need to understand what happened, why it happened and what you did to fix it. If we can show that the problems are behind you, you can qualify for an FHA mortgage.
5. Competitive interest rates and terms comparable to conventional – FHA mortgage rates are  surprisingly low. In most cases FHA rates will be with in an 1/8 or a ¼ of conventional rates, and if you have less than a 700 credit score, FHA rates are probably better.
6. Most borrowers can qualify for a higher amount with FHA – FHA allows higher housing and debt ratios than with conventional mortgages. You still need to do your own budget and make sure you feel comfortable with your payment, and we have to see that you can afford it, but with FHA you will be able to buy more home for your income.
7. More condos are financeable through FHA – one of the biggest advantages of FHA here in the Chicago area, is that it is much easier and less expensive to buy a condo with an FHA mortgage – especially if you have a low down payment. The FHA condo approval process is being changed now (spot loans are still available up through the end of January), but as the new process takes hold, more properties will eligible for FHA finance.
8. Multi unit homes (2-4 unit buildings) are easier and cheaper to buy with FHA – If you buy a 2 flat or a 3 or 4 unit building to live in one unit and rent out the others, you will pay more and need a higher down payment with a conventional loan. FHA treats small apartment building better. FHA lets you use more of the rental income to offset the mortgage payment (even if you have no experience as a landlord) and lets you buy with the same 3.5% down as you would with a single family home. Also, there are no hits to the pricing with FHA for 3-flats and 4-flats – with conventional you pay a lot more.
9. Allows non-occupant co borrowers (co-signers) so you can blend income – I’ve seen many cases where a couple is buying a home together, but for one reason or another, one partner isn’t able to qualify for the mortgage. FHA allows a relative to come on to the loan and blend their incomes in with the occupying borrowers, letting them buy a home where they otherwise couldn’t. This is also a good program where parents can help their kids who are just starting out.
10. FHA max mortgages have increased almost as high as conventional mortgages – For years, FHA was hardly used in the Chicago area because the loan amounts were too low compared to the values. That has changed. The maximum mortgage here in the greater Chicago area is now $410,000, right in line with the conventional mortgage limits. This means more buyers can take advantage FHA, even for higher priced homes.
11. 203k program is available for homes that need repairs and remodeling – Many of the homes for sale now are short sales or foreclosed properties. Foreclosures often have been neglected, and it is common that they have issues, sometimes minor, but often serious. Minor problems can be fixed before the close, but if it is a big problem like busted water pipes (because the big didn’t winterize the home), a new furnace or putting on a new roof, that isn’t possible. With an FHA 203k loan you can put the cost of the repairs into the loan and do the work after closing. This is a great way to buy a home in a distressed shape and add value with the repairs. You can also use the HA 203k for remodeling or putting in a new kitchen or bath.
12. FHA mortgages are assumable – This means that years from now when you sell your home, the new buyer can take over the loan under the same terms as you have. If interest rates go up in the next few years (and it’s a good bet that they will) you will e able to offer new buyers a mortgage with interest rates much lower than the market is offering. This means it will be easier to sell your home and your home is worth more than a home without low interest financing.

FHA loans aren’t the best option for everyone, if you have a good down payment and great credit a conventional loan is probably going to be right for you. But if you don’t have a lot to put down, have good but not perfect credit, want to buy a condo or for a host of other reasons (most first time home buyers here in Chicago), then FHA is the way to go. Remember, if you buy now along with all the other benefits of buying a home, you qualify for the First Time Home Buyer $8,000 Tax Credit – You need to have your contract together by April 30th. If you want to know if FHA is the best option for you, give me a call and we can see what works best for your personal situation.

Peter Thompson 630-479-6424

Illinois Mortgage Rates                   First time home buyer loans

Chicago Mortgage Company

Did you know that today is National Dress Up Your Pet Day? I’m not sure that this has anything to do with Chicago mortgage rates, but I am amazed at what people will do to their pets. I had a client who had a side business knitting sweaters for dogs, which she sold over the internet adding a good deal to her monthly income. It is good that there are so many resourceful people out there, because the job market is still weak. Initial unemployment claims for the week came in worse than expected today, meaning that the jobs picture is still a mess. Retail sales were also off. The expectation was for a gain of .5%, but the results were a loss of .2%. But bad news is good for mortgage rates, so mortgage rates are a little better today, and the trend is moving in the right direction.

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. 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. 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’ll take the time to find the rate and program that is best for you:

Conventional loans up to $417,000

For Jumbo loans over $417,000

(Another option is to break your Jumbo loan into 2 parts – 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.)

FHA LOANS – 3.5% down payment – FHA Maximum varies by County

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 Quote

VA Veterans Administration 0 Down Loans

Call for information on no-cost VA Streamlined Refinances

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.

Peter Thompson 630-479-6424

Illinois Mortgage Rates                   First time home buyer loans

Chicago Mortgage Company

Rates are off a little bit today, and even though there is some nervousness in the markets, mortgage rates are looking good after the improvement of the last several days. The big news today was the release of the Beige book, a FED report also known as the Survey on Current Economic Conditions, which showed that the economy has improved, though it is still at a very low level. Stocks improved on this news, and mortgage bonds sold off (rates get a little worse). But as I’ve said before, this all comes down to perception. If you are optimistic on the economy you focus on the areas of improvement, the flip side is that the report emphasized the low level of the economy, but for today anyways, the optimistic view held. The economy is still a mixed bag showing some improvements and many soft spots, and this is likely to continue for a while.

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. 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. 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’ll take the time to find the rate and program that is best for you:

Conventional loans up to $417,000

For Jumbo loans over $417,000

(Another option is to break your Jumbo loan into 2 parts – 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.)

FHA LOANS – 3.5% down payment – FHA Maximum varies by County

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 Quote

VA Veterans Administration 0 Down Loans

Call for information on no-cost VA Streamlined Refinances

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.

Peter Thompson 630-479-6424

Illinois Mortgage Rates                   First time home buyer loans

Chicago Mortgage Company

With no economic reports released today, this was a quiet day in the market. Rates are basically unchanged today, but the trend is favorable, in the short term. If you look out a little further, there are still some big reasons why mortgage rates will be rising. If you are on the fence about buying a home this year, or thinking about doing it but not ready yet, these low rates should be motivation to do it sooner rather than later. 

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. 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. 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’ll take the time to find the rate and program that is best for you:

Conventional loans up to $417,000

For Jumbo loans over $417,000

(Another option is to break your Jumbo loan into 2 parts – 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.)

FHA LOANS – 3.5% down payment – FHA Maximum varies by County

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 Quote

VA Veterans Administration 0 Down Loans

Call for information on no-cost VA Streamlined Refinances

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.

Peter Thompson 630-479-6424

Illinois Mortgage Rates                   First time home buyer loans

Chicago Mortgage Company

The weather is cold and snowy, the calendar is still stuck on January and we haven’t even gotten to the Super Bowl, so all signs tell us this is Winter. But make no mistake, in real estate this is the start of Spring. The Spring home buying market is getting off to an early start this year because of the extension of the First time home buying credit and the possibility that mortgage rates will be higher as the year goes on. Tax refunds will be in the mail soon, and new home buyers are starting to stir. This is a great time to buy a home, especially as a first time home buyer with no home to sell, but to take advantage of this opportunity, you need to understand the process and do some planning ahead of time.

Here are some tips to make your home buying experience the best, and to make sure you buy a home that works well for you:

1. Decide if this is really the best time for you to buy a home – This is a great time to buy a home and if you have friends that are starting to buy, or co-workers telling you about the great house they just bought, it is almost infectious. But buying a house isn’t the right decision for everyone. Home ownership is a long term proposition. You need to feel comfortable about making a decision that will impact your life for years to come. Is your job stable, or do you expect that you will need to move at some point in the next few years? Is your lifestyle stable? If you are single, do you expect to get married and have kids soon? Are you ready to start growing roots in one place, or do you still need to do some exploring to see where you want to be down the road. Homeownership is a big commitment. Make sure you are ready for it or that dream home could be an anchor to your dreams.

2. Be prepared to buy early this year – If you are ready to buy, there are some good reasons to get out and get looking early this year. Not only do you have the first time home buyers tax credit (which requires that you have the home under contract by April 30^th) but interest rates are likely to rise as the year goes on. The tax credit puts $8,000 in your pocket (for most buyers here in the Chicago area) and the lower interest rates could mean thousands more over the time you are in your home. If you aren’t able to buy now, don’t sweat it. There will still be great places to buy, and it could cost you more if you rush a decision before you are truly ready. But if you have the chance, take advantage of what could be the best time to buy for years to come.

3. Get educated about the process before you start looking – Buying a home and getting a mortgage is a complicated process, even if you have gone through it before. For a first time home buyer it can be really intimidating. But if you understand more about how the system works, you can take more control. This eliminates stress and helps you to reach your goals. There are a lot of great sources to start your research, this site, ptmortgage.com/blog has dozens of articles to help, and click at the link at the bottom of this page to download a free home buyer’s guide which covers the entire home buying and mortgage process in depth.

4. Set a budget and decide what you can comfortably afford – Most first time home buyers split into one of 2 groups – those who want to buy as much as they can afford, and those who don’t want to over buy, so they set the bar much lower than what they can afford. For most, the best route is the middle path. The best thing you can do is put together a budget and see where all your money goes every month. Look at this budget with your new mortgage payment added in. Make sure you allow for change. Will you need a new car soon? If so, you need to put in a new car payment. Will your new home bring in new expenses? Be sure to include utilities and incidentals (yard care and maintenance) that you don’t pay as a renter. On the other hand, you can afford a much higher payment as an owner than you could as a renter, because of the tax benefits ownership provides.

5. Know how much cash you will need to close and figure out how you can raise it – Saving up for the down pay ment is the biggest obstacle for most first time home buyers. Conventional loans are getting harder to qualify for and you will need at least 5% down and in many cases 10% down to qualify. But most first time home buyers now are choosing FHA loans. With FHA the down payment is only 3.5%, and all of that can be a gift. But even that small down payment can be an obstacle. Here is a list of ways to come up with your down payment, even if you are short on cash. Besides the down payment you will also need money for closing costs and escrows and pre-paids, but with FHA you can get a seller credit for up to 6% of the purchase price (much more than you will really need). If you negotiate for the seller to pay the closing costs, all you need is your down payment.

6. Get credit problems solved early – One of the biggest misconceptions for first time home buyers is that you need to have perfect credit in order to buy a home. You don’t need perfect credit and it is entirely normal to have a few dings on your credit. FHA will accept credit scores as low as 620. The bigger concern is credit patterns. If you have a history of credit problems, this will hurt you. But you can improve your credit and put yourself in a better position to buy. The first step is to get a current credit report (you can get a free copy of your credit from each credit repository once a year through annualcreditreport.com, or give me a call and I can run it for you). Here is an in-depth look at credit scores and how to improve them.

7. Get pre-approved early – Another big mistake is to start looking for a home before you know what you can qualify for, or if you can qualify at all. It hurts if you find the house that seems right for you and then find out that for one reason or another you can’t get a mortgage for it. There are so many little things that can trip you up, Talk with a good loan officer early and they will provide you with a road map on what you need to do to make sure you are qualified, and in the price range that is right for you. Pre-approval is now a quick and easy process. I usually start the pre-approval with a phone call and you can send the documents over by fax or email. If there are any issues that need to be taken care of, it’s better to know up-front so you can get them taken care of.

8. Work with experts who you can relate to – Buying a home is a complicated process. Your home purchase is one of the biggest investments you will ever make, it isn’t something to handle on your own and you need the best advice all the way through the process. If you have a friend of the family who sells real estate on the side, she may be a great person, but is she the right agent for you? If you have a friend who sells in Carol Stream but you want to buy a condo in the Ukrainian Village, is this the right agent for you? The same thing goes for your cousin the bankruptcy attorney who has never handled a real estate closing, this might not be the right person to close your home purchase. You want to work with a team of experts, your Realtor, loan officer and attorney (you won’t need an attorney until you have a contract on the property), who understand your needs and have experience in the area and with the type of property you are buying. You want a Realtor who knows the market area you are looking in and understands what affects the values in this area. You want a loan officer who works with first time home buyers and has experience in first time home buyer loans. Ask questions, do research and get referrals. You also need to find someone you can relate to and feel comfortable with. For the time you are buying, you will get to know your agent and your lender well. Find a team who you get along with and knows the problems that may arise, and how to avoid them.

9. Narrow down your search – It’s normal to start with a broad search, looking at different types of properties in a wide area. But if you are comparing properties in entirely different neighborhoods, this could be an apples to oranges comparison that actually makes things more confusing. Spend some time driving or walking the areas you are considering, talk with people who live there. Will this area work with your life style? Is it close to work and the places you like to go to? If your search is too broad it is likely to be frustrating. Narrowing it down will make your home search easier and more enjoyable.

10. Buy with an eye on selling – You need to buy a home that works for you now, but you’ll do much better in the long run if you think about who will buy your home in the future. The average first time home buyer stays in their home time for 5 to 7 years. (longer in the present market). What works for you now, may not as your life and circumstances change. Think about who your buyer will be and what they may want. Sometimes properties are cheap for a reason. You may be able to put up with something that others may see as a problem, but will you be able to find a buyer who feels the same way? If you buy with an FHA loan, the loan will be assumable for your buyer (they can take on the loan at the same interest rate and terms as what you have). This could be a big benefit and help you down the road when you are ready to sell.

11. Know what your goals are before you make an offer to purchase – Once you’ve found the home that is right for you, you need to make an offer and negotiate the price and terms. If you need certain things in the contract, such as the seller paying the closing costs, you need to ask for it upfront. Once the contract is agreed to you can’t change the terms. Negotiating can be stressful and emotional, and it can be too easy to get carried away in the heat of the moment and agree to something that you really don’t want. Think about it ahead of time and see what is really important to you. Everything is negotiable, but some things will be more important to you than other factors. Know what your deal breakers are before you negotiate.

12. Don’t focus on just the interest rate – Once you have a contract it is time to get your financing in order. You’ve already been pre-approved, so you know the best program for you and how it should be structured. This is the time where you can shop and make sure you get the best deal. If you look at ads for mortgages, they all emphasize how low their interest rate is. The truth is, there isn’t much difference in the rate charged from lender to lender. Some times one bank will be more aggressive than another, and a mortgage banker may have an advantage over a mortgage broker. Sometimes the opposite is true. But even when there is a difference, it is usually small. The difference in quoted rates more often comes down to how much the lender charges for the loan – the more costs you pay, the lower the rates should be. But the rate is only one part of getting a mortgage. You don’t want to over pay, but the lowest rate won’t help you if you can’t close on time, or if your lender doesn’t understand the ins and outs of the loan you are applying for. If your closing is delayed and your lender won’t return your calls, the extra 1/8 of a point doesn’t seem to matter as much.

13. Relax and enjoy the process – Buying a home, especially your first home, is by nature a stressful experience. That  isn’t going to change, but you can change your attitude about how you approach it. Give yourself enough time so you don’t feel that you have to make a fast decision. If you are in a rush you are more likely to settle for something that isn’t right for you, and it will be more stressful. Focus on your goal, not the day to day frustrations that may occur. Once you’ve found and closed on your home, you will have a beautiful home to call your own and a great start for building long term wealth. This is a good thing to focus on while you are in the middle of a snow storm looking at over priced homes that smell like wet dog. Enjoy the journey and focus on the destination.

I could go on, but these tips are a good place to start. This may be the best time to buy a home for years to come. Make it a great experience and get the home that is right for you.

Free First Time Home Buyers Guide

Peter Thompson 630-479-6424

Illinois Mortgage Rates                   First time home buyer loans

Chicago Mortgage Company

Unemployment Still a problem – 85,000 jobs lost, 10% unemployment rate

A lot of financial pundits have been calling lately for an end to the recession and a gain in jobs. It looks like they may have gotten too far ahead of the curve. The unemployment report was released today showing a loss of another 85,000 jobs. This is much improved from where it was for most of last year, but the expectation was for a loss of only 35,000 and many analysts were calling for gains on the upside, with some calling for the creation of over 100,000 new jobs. This splashes some cold water on the fast recovery theory and shows that this is still likely to be along slow grind back. There is some good news for mortgage rates in all this bad news. The slow job market means inflation isn’t likely to be a factor anytime soon, and this gives the Fed more cover for keeping rates low for a longer period of time. It also means that we may hear more about the Fed continuing to buy mortgage backed securities past their end of first quarter deadline, keeping mortgage rates in the low range. But that’s speculation for the future. The impact today is that mortgage bonds are volatile but improved slightly. Mortgage rates for today are about the same as yesterday, but the trend may be improving.

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. 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. 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’ll take the time to find the rate and program that is best for you:

Conventional loans up to $417,000

For Jumbo loans over $417,000

(Another option is to break your Jumbo loan into 2 parts – 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.)

FHA LOANS – 3.5% down payment – FHA Maximum varies by County

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 Quote

VA Veterans Administration 0 Down Loans

Call for information on no-cost VA Streamlined Refinances

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.

Peter Thompson 630-479-6424

Illinois Mortgage Rates                   First time home buyer loans

Chicago Mortgage Company

Mortgage rates are flat today as the mortgage bond traders wait for the release of the unemployment report tomorrow morning. This jobs report is always one of the most anticipated reports for rate watchers, as it gives a quick snap shot of strength in the economy. Remember, bad news for the economy is good news for mortgage rates, so as the job picture improves, rates will continue to move up. This all comes down to fear of inflation. When job losses are high, like they were at this time last year, the Fed goes into an accommodative, easy money policy which keeps rates low (short term rates are still pegged at 0-.25%). As the economy strengthens and more jobs are created, the fear of an overheating economy takes hold, and the Fed will usually raise rates. In the past there have been too many times where the Fed reacted too slow, and the inflation was the result. Bond holders hate inflation as it lessens the value of their investments, so any hint (no matter how faint) of inflation will kill bond prices causing mortgage rates to rise. The economy is still losing jobs, but at a much slower pace than at any time over the last 2 years. The report tomorrow is expected to show a loss of about 35,000 jobs for the month of December. If the results are better than that, we will surely have a sell off, and rates will go higher. If you are ready to lock in your mortgage rate, it makes sense to do it today, rather than rolling the dice and seeing what happens tomorrow.

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. 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. 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’ll take the time to find the rate and program that is best for you:

Conventional loans up to $417,000

For Jumbo loans over $417,000

(Another option is to break your Jumbo loan into 2 parts – 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.)

FHA LOANS – 3.5% down payment – FHA Maximum varies by County

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 Quote

VA Veterans Administration 0 Down Loans

Call for information on no-cost VA Streamlined Refinances

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.

Peter Thompson 630-479-6424

Illinois Mortgage Rates                   First time home buyer loans

Chicago Mortgage Company

Volatility has returned to the mortgage market and the rate trend is slightly higher today, though not enough to make a difference in most cases. Part of this may be based on economic reports, but a greater part is because mortgage bond traders are nervous, and want to lower their risk as they position themselves for the January unemployment report (this report usually has the biggest impact on mortgage rates) which comes out Friday morning. Today the ISM, a measure of strength in the service (non-manufacturing industry) came in higher, but lower than expectation. The meetings of the last Fed Open Markets Committee meeting were released today and the economy is improving and inflation remains low. The outlook for jobs is still soft and  and there is concern about what happens to the housing market once the Fed stops buying mortgage bonds and the home buyers tax credit expires. If you are ready to lock in a rate, you may want to do it before the jobs report is released on Friday. If it comes in better than expected, rates could be on the rise again. Over all, mortgage rates are still near their all time lows.

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. 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. 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’ll take the time to find the rate and program that is best for you:

Conventional loans up to $417,000

For Jumbo loans over $417,000

(Another option is to break your Jumbo loan into 2 parts – 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.)

FHA LOANS – 3.5% down payment – FHA Maximum varies by County

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 Quote

VA Veterans Administration 0 Down Loans

Call for information on no-cost VA Streamlined Refinances

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.

Peter Thompson 630-479-6424

Illinois Mortgage Rates                   First time home buyer loans

Downers Grove Mortgage Company